Türkiye has lifted some of the retaliatory tariffs on US imports like passenger cars and fruits ahead of a much-anticipated meeting between Turkish President Tayyip Erdogan and US President Donald Trump later this week.
Most of the retaliatory tariffs that Ankara has lifted this week date back to 2018 when Trump doubled the tariff on Turkish products, like steel and aluminium.
In response, Türkiye had also doubled tariffs on some of the US imports, most notably passenger cars, alcohol and tobacco. Ankara called the countermove a retaliation for the “deliberate attacks” on the Turkish economy.
Türkiye’s latest decision to cut back tariffs on US goods is being viewed as a sign of warming relations between Ankara and Washington.
Trump has said he expects to conclude “trade and military deals” during the ongoing US visit by President Erdogan.
The Trump administration has used tariffs as an economic weapon against not only its rivals like Russia but also allies such as India and Canada, ostensibly to reduce a massive trade deficit, create jobs and reshape global supply chains in its favour.
Last month, the US announced it would subject imports from Türkiye to a 15 percent tariff rate. In response, Ankara refrained from changing the tariff rates on US imports.
In fact, Türkiye's Trade Ministry noted at the time that Washington considered Ankara a “balanced and positive trading partner”.
“This situation creates a significant advantage for Türkiye compared to many countries, especially Asian and Latin American countries,” the ministry said in a statement.
It noted that “intensive diplomatic and technical discussions” were underway between Turkish and US officials on tariffs applied to strategic sectors, such as steel, automotive, and copper.
“Negotiations seeking to lower rates favourably to Türkiye are ongoing and constructive. Our contacts are also ongoing to ensure an opening that meets our expectations, particularly for our textile and apparel sectors,” it said.
Türkiye has set a goal of $100 billion in annual two-way trade with the US, even though bilateral trade currently hovers around $30 billion.
The US is Türkiye’s second-biggest export partner with a share of 6.2 percent in total foreign sales in 2024. At the same time, Washington is the fifth-biggest import partner of Ankara with a share of 4.7 percent.
