Turkey recently imposed a 40% additional tariff on vehicle imports from China, a move designed to address concerns over its widening current account deficit and provide protection for domestic automakers. The decision comes amidst increased trade pressures on China, with several countries, including the European Union, considering similar tariffs on Chinese electric vehicle exports, which they claim benefit from significant subsidies from Beijing. The Turkish tariff, which will take effect from July 7th, will have a minimum charge of $7,000 per vehicle. In a statement, the Turkish trade ministry emphasized the tariff’s purpose in boosting domestic production and reducing the import of hybrid and conventional passenger vehicles from China. The ministry also highlighted the importance of the tariff in meeting current account deficit targets and fostering domestic investment and manufacturing. Notably, Turkey had previously imposed additional tariffs on Chinese electric vehicle imports in 2023 and implemented regulations governing EV maintenance and services. The government’s broader strategy involves promoting production and exports to mitigate the chronic current account deficit, which stood at $45.2 billion in 2022.
