Turkey Lifts 2018 Retaliatory Tariffs on US Goods

Ankara has lifted the additional customs duties applied since 2018 on some goods imported from the US. This is stated in a decision by Turkish President Erdoğan. According to experts, this brings Turkey closer to its declared goal of increasing the volume of trade with the US to 100 billion dollars. In addition, to protect its auto manufacturers, Turkey has imposed new taxes on the import of cars from countries outside the EU and from countries with trade agreements, ranging from 25 to 30 percent.

As a result of economic tensions with the US, in June 2018, it was decided to introduce additional financial obligations on some American goods, including cars, beverages, tobacco products, cosmetics, and some types of food products.

In an important step towards normalizing trade relations, Turkey, after negotiations within the framework of the World Trade Organization (WTO), has lifted the retaliatory customs duties imposed on a number of American goods since 2018.

This decision, enshrined in a presidential decree published in the country's "Official Gazette," cancels a previously adopted decision of the Cabinet of Ministers. At that time, the sanctions were imposed in response to additional customs duties on the import of Turkish steel and aluminum by the US.

The Turkish Ministry of Trade clarified that the additional financial obligations, despite the steps taken by the parties over the years and periodic updates, continued to apply at certain rates. The dispute was discussed in various WTO committees and in bilateral negotiations.

"As a result of positive negotiations with the US and consultations within the framework of the WTO dispute settlement mechanism, the additional financial obligations applied to the import of some American goods have been terminated," the ministry's statement said.

The list of goods subject to additional customs duties included cars (60%), ethyl alcohol and alcoholic beverages (70%), cosmetic products (30%), plastic goods (30%), leaf tobacco (30%), rice (25%), nuts (10%), and various types of paper products (10-25%).

The Ministry of Trade emphasized that this step is in line with Turkey's goal of increasing the volume of bilateral trade with the United States to 100 billion dollars. Officials noted that work will continue to expand trade relations in the interests of both sides, to diversify trade, taking into account competitive conditions, and to develop new areas of cooperation.

The abolition of customs duties is taking place against the backdrop of a broader diplomatic interaction between Turkey and the US, further strengthening the foundations of military cooperation between the two key NATO allies with economic cooperation.