Turkey has announced plans to increase tariffs on all vehicle purchases from China by 40% in an effort to reduce imports and address the current account deficit.
The new tariff, set at a minimum of $7,000, will come into effect following a 30-day period, according to a presidential decision published in the Official Gazette.
This move comes amidst growing global pressure on China’s electric vehicle exports, which many countries allege are heavily subsidized by Beijing. The European Commission is expected to announce next week whether it will impose additional tariffs.
Turkey had previously raised customs duties on Chinese electric vehicles in 2023 to support the country’s first domestically produced EV under the Togg brand.
In a statement, the Turkish trade ministry explained the rationale behind the decision, stating that “An additional tariff will be imposed on import of conventional and hybrid passenger vehicles from China in order to increase and protect the decreasing share of domestic production.”
The Turkish government has been implementing measures to address inflation, which stood at around 75.5% at the end of May. These measures include maintaining a tight monetary policy, strengthening fiscal positions, and narrowing the current account deficit.