Turkey imposes 40% tariff on Chinese vehicle imports: Here's why
What's the story
Turkey has declared a 40% additional tariff on vehicle imports from China, effective from July 7, according to the country's trade ministry.
The tariff is aimed at preventing potential deterioration of Turkey's current account balance, and protecting domestic automakers.
The minimum set tariff will be $7,000 per vehicle, as stated in a presidential decision published in the Official Gazette.
Rules
Tariff applies to conventional and hybrid vehicles
The trade ministry has clarified that the additional 40% tariff will apply to both conventional and hybrid passenger cars imported from China.
The aim is to "increase and protect the decreasing share of domestic production," as stated by the ministry.
The decision was made in light of current account deficit targets and initiatives designed to stimulate domestic investment and production.
Implementation
Tariff calculation and previous regulations
If the 40% tax calculated from the price of an imported vehicle falls below $7,000, then the minimum tariff of $7,000 will be charged.
This follows Turkey's previous imposition of additional taxes on electric vehicle imports from China in 2023.
The country also introduced regulations concerning electric vehicle maintenance and services at that time.
Information
China's EV policy under fire
Worldwide, China is facing a rise in trade pressures over its growing EV exports. Many nations claim that Beijing is heavily subsidizing the sector to take out the competition. Next week, the European Commission might announce tariffs similar to Turkey.