The Impact of International Tariffs on Turkey’s Trade in 2025
In 2025, Turkey’s international trade faces new challenges due to changes in global trade law. The Trump administration’s 10% tariff on all U.S. imports (effective January 2025) and reciprocal tariffs for countries with a trade deficit with the U.S. directly impact Turkish exporters, including firms with Russian capital. These changes occur alongside the ongoing EU-Turkey Customs Union, which ensures duty-free access for industrial goods.
Details:
1. U.S. Tariffs
The new 10% import tariff increases the cost of Turkish goods (e.g., textiles, auto parts, and steel) in the U.S. market, reducing competitiveness in high-competition sectors.
2. Reciprocal Tariffs
The U.S. introduced additional tariffs for countries with trade deficits, potentially affecting Turkey, which exported approximately $14 billion to the U.S. in 2024. Companies must seek new markets or optimize costs.
3. EU-Turkey Customs Union
The 1995 agreement continues to provide duty-free access for industrial goods to the EU, benefiting Turkish manufacturers. However, agricultural products face quotas, impacting exporters in this sector.
4. Opportunities for Russia-Turkey Businesses
Russian companies registered in Turkey can leverage Turkish firm status to minimize tariffs when exporting to the EU, particularly in machinery and electronics.
Practical Implications:
Russia-Turkey companies exporting to the U.S. will face higher costs due to new tariffs.
However, registering a business in Turkey allows access to EU Customs Union benefits, easing exports to Europe.
Companies should diversify markets, such as the Middle East and Central Asia, to offset U.S. market losses.
Recommendations:
Consider registering a company in Turkey to access EU Customs Union benefits.
Analyze markets for export diversification (e.g., UAE, Kazakhstan).
Seek legal support to optimize export contracts and minimize tariff risks.
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