Turkey imposes 40 pct tariff on vehicle imports from China

Turkey's Trade Ministry has announced the introduction of a 40% additional tariff on imports of vehicles from China to halt a possible deterioration of its current account balance and protect domestic automakers.

Sunday June 09 2024 11:33 pm

Reuters

Turkey will impose a 40% additional tariff on imports of vehicles from China to halt a possible deterioration of its current account balance and protect domestic automakers, the trade ministry said on June 8.

China is facing increasing trade pressures worldwide over its growing exports of electric vehicles, which many countries claim are being heavily subsidized by Beijing to support its sputtering economy. The European Commission is expected to announce next week whether to impose provisional extra tariffs.

The additional Turkish tariff will be set at a minimum of $7,000 per vehicle, with effect from July 7, a presidential decision published in the country's Official Gazette showed.

"An additional tariff will be imposed on import of conventional and hybrid passenger vehicles from China in order to increase and protect the decreasing share of domestic production," trade ministry said.

In a statement, the ministry also said the additional tariff decision was made taking into current account deficit targets and efforts to encourage domestic investment and production.

The decision said if the 40% tariff calculated from the price of an imported vehicle is under $7,000 then the minimum tariff of $7,000 will be charged.

In 2023, Turkey imposed additional tariffs on electric vehicle imports from China and brought some regulations regarding EV maintenance and services.

The government is encouraging more production and exports to reduce the chronic current account deficit, which stood at $45.2 billion last year.