- Chinese cars imported to Turkey will be subject to tariffs of 40 percent.
- A flat duty of $7,000 will be applied to cheaper cars where tariffs amount to less than $7k.
- The move is meant to protect Turkey’s local industry and avoid worsening the nation’s trade balance.
The war against cheap Chinese cars continues as Turkey announces the imposition of a 40 percent duty on Chinese automotive imports. The move follows similar duties applied by the U.S., which recently announced that it would raise import duties on Chinese EVs from 25 percent to 100 percent.
Turkey’s trade ministry said that the move was made to help protect the country’s balance of payments, as well as serving as a protection for local industry. The country’s trade deficit stood at $45.2 billion last year.
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The new duties go one step further, targeting the lowest-cost cars that China has to offer by imposing a minimum tariff of $7,000 per vehicle. If, for example, the 40 percent duty calculated is less than $7,000 in value, a minimum duty of $7,000 will be applied.
Additional tariffs have already been in place for electric cars since 2023, designed to support the introduction of the TOGG T10X in late 2023, the nation’s first domestically manufactured electric car. Turkey’s electric car project was a key campaign pledge for President Recep Tayyip Erdoğan before the 2023 general elections.
The net has now been expanded to include Chinese hybrid and combustion vehicles. It’s the latest blow for China, which has been hit with tariffs from several countries worried that an oversupply of cut-price Chinese products stems from excess capacity and excessive local subsidies, harming competition.
Following the U.S. and now Turkey, the European Union is set to reveal similar restrictions imposed on Chinese EVs this week. However, the EU will have to tread lightly, as European automakers are not only fearful of retribution from China due to their reliance on sales in the country but also manufacture and import their own models from China.
Turkey’s duties will be applied from July 7, as announced by a presidential decision in the country’s official gazette.
