Türkiye Imposes 40% Import Duty on Chinese Cars | Carscoops - Latest Global News

Türkiye Imposes 40% Import Duty on Chinese Cars | Carscoops

Turkey is concerned about a worsening trade deficit and possible damage to domestic industry from cheap Chinese cars

                                        https://www.carscoops.com/author/sam-d-smith/                                    

from Sam D. Smith

June 11, 2024 at 07:00

    Türkiye imposes 40% import duty on Chinese cars

  • Chinese cars imported into Turkey are subject to tariffs of 40 percent.
  • Cheaper cars, where tariffs are less than $7,000, will be subject to a flat tariff of $7,000.
  • This step is intended to protect Turkish industry and prevent a deterioration in the country’s trade balance.

The fight against cheap Chinese cars continues: Turkey has announced that it will impose a 40 percent tariff on Chinese car imports. The US has already introduced similar tariffs and recently announced that it will increase import duties on Chinese electric cars from 25 to 100 percent.

Turkey’s Trade Ministry said the move was intended to protect the country’s balance of payments while also protecting local industry. The country’s trade deficit reached $45.2 billion last year.

Read: The threat from Mexico in the electric car war between the US and China

The new tariffs go a step further and target the cheapest cars China has to offer, imposing a minimum tariff of $7,000 per vehicle. For example, if the calculated 40 percent tariff is worth less than $7,000, a minimum tariff of $7,000 will be imposed.

Additional tariffs on electric cars have already been in place since 2023 to support the launch of the TOGG T10X, the country’s first domestically produced electric car, in late 2023. Turkey’s electric car project was a key campaign promise of President Recep Tayyip Erdoğan ahead of the 2023 parliamentary elections.

    Türkiye imposes 40% import duty on Chinese cars
The Togg T10X built in Turkey

The network has now been expanded to include Chinese hybrid and combustion vehicles. This is the latest blow to China, which is already facing tariffs from several countries that fear that an oversupply of cheap Chinese products is due to overcapacity and excessive local subsidies, which are damaging competition.

Following the US and now Turkey, the European Union will announce similar restrictions on Chinese electric cars this week. However, the EU must tread carefully as European carmakers not only fear reprisals from China due to their dependence on sales in the country, but also produce and import their own models in China.

Turkey’s tariffs will come into effect on July 7, according to a presidential decree published in the country’s Official Gazette.

    Türkiye imposes 40% import duty on Chinese cars

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