Trump imposes 15% tariffs on Turkish goods, effective immediately
In a recent announcement, U.S. President Donald Trump revealed increased import tariffs on over 90 countries, including Turkey, raising the rate for Turkish goods to 15%. However, Turkey is among the least-affected countries by these new tariffs, primarily due to its balanced bilateral trade with the United States.
Key reasons behind Turkey's lower tariff impact include a balanced trade gap, strong mutual investments, and bilateral trade and investment relations. In 2024, U.S. imports from Turkey totaled $16.35 billion, while the exports stood at $16.22 billion, resulting in a very small trade deficit of about $125 million. This near balance kept Turkey's tariff rate relatively moderate at 15%, compared to much higher rates for countries with larger trade deficits.
Presidents Trump and Erdogan also set a trade volume target in 2019, which may further encourage maintaining cordial trade relations and moderate tariffs. Additionally, Turkey's standing and balanced trade spared it from geopolitical tensions that influenced tariffs on countries like Russia and Brazil.
In contrast, countries with large trade deficits were subjected to much steeper tariffs as part of Trump's "baseline" tariff policy, intended to address trade imbalances and promote reciprocity in trade agreements.
The tariffs on Indian goods, for example, have been raised to 50% due to continued purchases of Russian oil. However, Turkey was included among the countries subject to the baseline tariffs due to its relatively balanced bilateral trade with the United States.
The new tariffs do not apply to sector-specific imports already subject to separate regulatory regimes, such as steel, automobiles, pharmaceuticals, and microchips. Exemptions have been granted for Brazilian orange juice and civil aircraft, softening the overall impact of the tariffs.
It's worth noting that the Trump administration is implementing these new tariffs not just due to trade gaps but also due to geopolitical tensions. Despite this, Turkey, while affected by the new 15% tariff band, was not singled out in these geopolitical provisions.
In June 2023, the U.S. trade deficit narrowed by 16% to $60.2 billion, its lowest level since September 2023. This narrowing deficit, coupled with Turkey's balanced trade and strategic economic partnership with the U.S., has contributed to Turkey's relatively minor impact from these tariff increases.
[1] Source: Office of the U.S. Trade Representative [2] Source: Turkish Exporters Assembly
- The recent announcement by U.S. President Donald Trump increased import tariffs on Turkish goods, setting the rate at 15%.
- Despite the new tariffs, Turkey is among the least-affected countries due to its balanced bilateral trade with the United States.
- In 2024, U.S. imports from Turkey totaled $16.35 billion, while the exports stood at $16.22 billion, resulting in a small trade deficit of about $125 million.
- Presidents Trump and Erdogan set a trade volume target in 2019, which may further encourage maintaining cordial trade relations and moderate tariffs between the two countries.
- Turkey's standing and balanced trade spared it from geopolitical tensions that influenced tariffs on countries like Russia and Brazil.
- The new tariffs do not apply to sector-specific imports such as steel, automobiles, pharmaceuticals, and microchips, and exemptions have been granted for Brazilian orange juice and civil aircraft.
