The fight against inexpensive Chinese cars is intensifying as Turkey announces a 40 percent duty on Chinese automotive imports. This decision comes on the heels of similar actions taken by the United States, which recently decided to increase import duties on Chinese electric vehicles (EVs) from 25 percent to a staggering 100 percent.
According to Turkey's trade ministry, this measure aims to protect the country's economic stability and safeguard its local automotive industry. Last year, Turkey faced a significant trade deficit of $45.2 billion, which this new duty seeks to address.
The new tariffs are particularly stringent, focusing on the most affordable Chinese cars by imposing a minimum tariff of $7,000 per vehicle. This means that if the calculated 40 percent duty amounts to less than $7,000, the tariff will automatically be set at $7,000.
In addition to these duties, Turkey has had extra tariffs on electric vehicles since 2023. These tariffs were introduced to support the launch of the TOGG T10X, Turkey's first domestically produced electric car, which debuted in late 2023. The development of this electric car was a key promise made by President Recep Tayyip Erdoğan during his campaign for the 2023 general elections.
The scope of these tariffs has now been broadened to include Chinese hybrid and combustion engine vehicles. This move is part of a broader trend where several countries have imposed tariffs on Chinese products. These nations are concerned that the influx of cheap Chinese goods, bolstered by excess production capacity and substantial local subsidies, is undermining fair competition in the global market.
Following the steps of the U.S. and Turkey, the European Union is also preparing to announce similar restrictions on Chinese EVs. However, the EU faces a delicate situation. European automakers are wary of potential retaliation from China, given their dependence on the Chinese market for sales and the fact that they manufacture and import some of their models from China.
Turkey's new tariffs will be enforced starting July 7, as outlined in a presidential decision published in the country's official gazette. This latest measure represents another significant challenge for China, which is already grappling with trade barriers from multiple countries concerned about the impact of low-cost Chinese products on their markets.
Turkey's aggressive tariff strategy underscores the growing global resistance to Chinese automotive imports. By implementing these duties, Turkey aims to protect its economy and local car manufacturers, reflecting a broader trend of countries seeking to balance trade relations with China while defending their own industries.