Turkey will impose a further 40% tariff on imported vehicles from China to prevent possible worsening of its balance of trade and safeguard local car manufacturers, the ministry of commerce said on Saturday.
China is currently facing increased trade pressures across the globe due to the increase in its exports of electric cars, which are allegedly heavily subsidized by Beijing to prop up its ailing economy. The European commission is expected to decide next week whether to initiate provisional additional duties or not.
According to a decree published in Turkey’s Official Gazette, the new additional duty will be $7,000 per vehicle at least, starting from July 7.
The trade ministry states that this is one of several measures that have been put into place as part of an effort to revitalize and shore up domestic production through increased competition for conventional and hybrid passenger vehicle imports from China.
The ministerial statement also said that it considered current account deficit targets and attempts aimed at encouraging domestic investment and production when taking the decision about imposition of additional duties.
It added that if the calculated 40% tariff, which would amount up from price is anything lower than $7000 then thus minimum rate will be applied since it should be at least $7000.
By imposing extra tariffs on Chinese EVs in 2023, Turkey also imposed some rules about EV maintenance and service provision there after all these years.
The government wants more production and export aimed at reducing chronic current account deficit of $45.2 billion recorded last year.
