Turkey surprisingly impose 40% tariffs on Chinese vehicles from July 7

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Turkey’s Ministry of Trade announced over the past weekend that it will impose an additional 40% tariff on cars imported from China. The minimum additional tariff for each vehicle will be 7,000 USD, and it will take effect from July 7.

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The Ministry stated that the additional tariffs on ICE and hybrids imported from China aim to protect domestic automakers and address the country’s current account deficit issues.

China is under increasing global trade scrutiny due to its rising exports of electric vehicles. Various countries have accused Beijing of heavily subsidizing these exports to support its electric vehicle builders. The European Commission will decide this week on implementing provisional extra tariffs. Meanwhile, the US announced 100% tariffs on Chinese EV imports last month.

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In Turkey, a new tariff of at least 7,000 USD per vehicle on cars imported from China will be enforced starting July 7, as ordered by a presidential decree. The Turkish Ministry of Trade declared that this tariff will apply to both conventional and hybrid vehicles from China to protect the diminishing share of domestic production.

The Ministry emphasized that the decision aligns with efforts to address the country’s current account deficit targets and promote domestic investment and manufacturing. Should the calculated 40% tariff on an imported vehicle’s price fall below 7,000 USD, a minimum tariff of 7,000 USD will be imposed, basically barring budget Chinese vehicles from entering the country

In 2023, Turkey had already introduced additional tariffs on electric vehicle imports from China and implemented regulations concerning EV maintenance and services. The government is pushing for increased production and exports to tackle the chronic current account deficit, which amounted to 45.2 USD billion last year.

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Editor’s comment

Last Wednesday, Turkish Foreign Minister Hakan Fidan concluded a three-day visit to China, where he met with his counterpart Wang Yi and other officials. The announcement of 40% vehicle tariffs a week later surprised many in China, as can be seen in overreacting posts from local commentators and media.

Also, this week, we should learn what tariffs the European Commission will introduce on Chinese EVs. It will most likely not be as harsh as in Turkey and the US, as many local automakers lobby in China’s favor. And they have a good reason for it – Volkswagen China is the biggest market, Mercedes-Benz is 20% controlled by Chinese companies (10% belongs to state-owned Beijing Auto and 10% belongs to Geely founder Li Shufu), and Geely wholly owns Volvo.

Moreover, many Chinese automakers have already built vehicle factories in the EU. BYD plans a plant in Hungary, Chery chose Barcelona for its first EU EV plant, Great Wall Motor is choosing between Poland, Germany, Czechia, and Hungary, and Leapmotor vehicles will be assembled in Stellantis Polish plant.

Source: Sina Finance

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  1. Well….I don’t think Chinese care that much about Turkey…. probably nobody cares…the Important market is China, local and EU

  2. This probably keeps the Americans happy while the Chinese car use Turkey to build cars for the European market instead of Eastern Europe.

  3. Well they will for sure raise customs for european products in China, and most important supply prodcuts. Don’t we forget that almost every european car depend from parts from china


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