Turkey’s new tariff policy with the US presents a unique opportunity for Turkish exporters to gain a competitive edge in the global market, while experts also warn of challenges ahead.
The recent imposition of 10% tariffs by the United States on Turkey‘s goods has sparked debate about its potential impact on the country’s economy. While some experts predict a negative effect, others see this as an opportunity to boost exports and increase Turkey‘s profile in the global market.
Trade between Turkey and the US amounts to over $30 billion, making it one of Turkey‘s most important trading partners. In recent years, Turkish exports to the US have risen by an average of 16%, while US exports to Turkey have increased by 9%. The country’s main exports to the US include chemical products, automotive parts, clothing, carpets, and electronics.
The new tariff policy could help Turkish exporters gain a competitive edge in the US market. According to Bülent Aymen, deputy president of the Association of Mediterranean Furniture, Paper and Forest Products Exporters, ‘The intensification of the tariff war enables Turkey to gain market share in US sectors such as chemicals, cars, furniture, and electronics.‘ This could be particularly beneficial for Turkish companies that have been struggling to compete with other countries.
Turkey has a long history of exporting goods, with textiles and carpets being major contributors to its economy.
In recent years, Turkish exporters have diversified their products to include electronics, machinery, and automotive parts.
According to the Turkish Ministry of Trade, exports reached $175 billion in 2020, with key markets including Germany, the UK, and Iraq.
The country's strategic location between Europe and Asia has made it an attractive hub for international trade.
However, some experts warn that there are challenges ahead. Seref Fayat, textile commissioner at the Union of Chambers and Commodity Exchanges of Turkey, notes that ‘we need to act quickly now‘ to take advantage of the situation. He also warns that limited access to Turkish products in the US due to a lack of trade centers and warehouses could be a problem.
In addition to exports, Turkey could establish itself as a strategic player in another field: as a production location for Asian companies. Inviting companies from China to have their products manufactured in Turkey would help them avoid high customs duties. Murat Akyüz, former president of the Istanbul Chemicals and Chemical Products Exporters Association, sees this as an opportunity to promote investment in the country.
Turkey and China have maintained diplomatic relations since 1971.
The two countries have a strong economic partnership, with trade between them exceeding $27 billion in 2020.
Turkey is one of the largest investors in China's Belt and Road Initiative (BRI), with several major infrastructure projects underway.
The two nations also cooperate on defense and security issues, including counter-terrorism efforts.
While there are challenges ahead, many experts believe that the new tariff policy could be a boon for Turkish exporters. By taking advantage of the situation and promoting trade with the US, Turkey can increase its profile in the global market and establish itself as a strategic player in other fields.
