Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that Turkey will increase tariffs on all cars imported from China by 40 percent in a bid to narrow the country’s trade deficit with China. Turkey’s Trade Ministry said that the move is meant to protect Turkey’s declining share of domestic production. The Ministry’s statement also mentioned that the additional tariffs will reduce Turkey’s current account deficit and to encourage domestic investments. The decision will take effect on July 7.
The additional tariffs will be at least US$7,000 per vehicle; if the 40 percent tariff (as calculated based on the price of the imported car) is less than US$7,000 then a minimum tariff of US$7,000 will be imposed.
Turkey previously raised tariffs on Chinese electric cars in 2023 to support the country’s first domestically produced electric car. The Turkish government is now taking measures to combat inflation, including the maintenance of tight monetary policy, the strengthening of fiscal positions, and the narrowing of the trade deficit. Last year, Turkey’s trade deficit was US$45.2 billion. At the end of May, the country’s inflation rate reached about 75.5 percent.
Source: Lianhe Zaobao, June 8, 2024
https://www.zaobao.com.sg/realtime/world/story20240608-3866680