In a significant move that shows warming ties between the two countries, Turkey has ended some tariffs on goods imported from the United States. These tariffs were originally imposed in 2018 as a response to U.S. tariffs on Turkish steel and aluminum, which had created tensions between the two nations and affected several industries.
The tariffs that have now been removed covered a wide range of products, including passenger cars, fruit, rice, tobacco, alcoholic drinks, solid fuels, and chemical products. The decision was officially announced in Turkey’s Official Gazette on Monday.
Officials said the changes are part of ongoing negotiations with the United States. The Turkish trade ministry explained that the extra costs previously applied to certain imports would no longer be in effect. This step is seen as a signal of improving trade relations between the two countries, ahead of a planned meeting between President Tayyip Erdogan and U.S. President Donald Trump.
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Background of U.S.-Turkey Trade Tensions
The trade relationship between Turkey and the United States has been shaped by both cooperation and disputes. In 2018, the U.S. introduced tariffs on Turkish steel and aluminum. In response, Turkey placed its own tariffs on U.S. products.
A tariff is a tax a country charges on goods imported from another country, making them more expensive for buyers. Tariffs are often used to protect local industries, though they can make imported products more costly for consumers.
When a country imposes tariffs in response to tariffs from another country, these are called retaliatory tariffs. Turkey’s 2018 tariffs on U.S. products were retaliatory tariffs. The recent cancellation of these tariffs means that the extra costs on U.S. imports are no longer in place, helping improve trade relations.
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The tariffs introduced in 2018 had been adjusted over the years but were never fully removed until now. Trade between Turkey and the United States reached about $30 billion last year, well below Turkey’s target of $100 billion in annual two-way trade. By lifting the retaliatory tariffs, Turkey has opened the door to increasing trade volumes with the United States.
Historically, President Erdogan and President Trump have had a mixed relationship, combining cooperation with disagreements over military and defense issues. Despite this, the cancellation of some tariffs signals a focus on economic cooperation.
Additional Trade Measures
Even as tariffs on U.S. products are being lifted, Turkey has introduced new measures for other trading partners. Passenger cars imported from countries outside the European Union and those without free trade agreements will now face an additional 25% to 30% customs duty.
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A customs duty is another type of tax placed on imported goods. It works like a tariff but can apply more broadly and is used to protect domestic industries. By setting these new duties on cars, Turkey aims to strengthen its local market while still easing tensions with the United States.
The trade ministry stated that Turkey will continue developing policies to expand trade and explore new areas of cooperation. Officials noted that the decision to end the retaliatory tariffs is part of wider negotiations aimed at building stronger economic ties.
The cancellation comes just days before a high-profile meeting between President Tayyip Erdogan and President Donald Trump, where trade discussions are expected to play an important role. This step has already been noted as one of the clearest signs of an effort to repair trade relations and reduce costs on imported goods.
