Turkey imposes 40pc tariff on vehicle imports from China

A worker wipes an Ora, a Chinese electric car, during the Auto Shanghai 2023 convention in Shanghai, on April 18, 2023. [AP Photo]

Turkey will impose a 40 per cent additional tariff on imports of vehicles from China to halt a possible deterioration of its current trade balance and protect domestic automakers, the trade ministry said Saturday.

China is facing increasing trade pressures worldwide over its growing exports of electric vehicles, which many countries claim are being heavily subsidized by Beijing to support its sputtering economy. The European Commission is expected to announce next week whether to impose provisional extra tariffs.

The additional Turkish tariff will be set at a minimum of $7,000 per vehicle, going into effect from July 7, a presidential decision published in the country's Official Gazette showed.

"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," trade ministry said.

In a statement, the ministry also said the additional tariff decision was made taking into current account deficit targets and efforts to encourage domestic investment and production.

The decision said if the 40 per cent tariff calculated from the price of an imported vehicle is under $7,000 then the minimum tariff of $7,000 will be charged.

In 2023, Turkey imposed additional tariffs on electric vehicle imports from China and brought some regulations regarding EV maintenance and services.

The government is encouraging more production and exports to reduce the chronic current trade deficit, which stood at $45.2 billion last year.