Donald Trump has hinted at imposing a universal tariff on all goods imported into the U.S., potentially affecting the $3 trillion worth of imports annually. This move could fuel inflation and disrupt trade relations, particularly with China. While the IEEPA could offer a legal path for Trump’s plan, the economic implications remain a source of debate and concern.
Turkey has announced a 40% additional tariff on vehicle imports from China, aiming to curb its widening current account balance and safeguard domestic automakers. The move comes amid concerns about China’s aggressive exports of electric vehicles, which many nations accuse of receiving heavy subsidies from Beijing. The European Commission is also considering imposing similar tariffs. The Turkish tariff will take effect from July 7th, with a minimum charge of $7,000 per vehicle. The trade ministry stated that the tariff is intended to bolster domestic production and reduce the import of hybrid and conventional passenger vehicles from China. Additionally, the ministry mentioned the importance of the tariff in meeting current account deficit targets and encouraging domestic investment and manufacturing. In 2023, Turkey had already imposed additional tariffs on Chinese electric vehicle imports and implemented regulations governing EV maintenance and services. The government’s strategy involves promoting production and exports to mitigate the chronic current account deficit, which reached $45.2 billion in 2022.
