On Saturday, June 8th, Turkey issued a presidential decree announcing that the country will impose an additional 40% tariff on cars imported from China.
According to the presidential decree published in the Turkish Official Gazette, Turkey will impose a 40% additional tariff on all cars imported from China. This decision will come into effect on July 7th.
Under this regulation, Turkey will levy a minimum additional tariff of $7,000 on each car imported from China. If the 40% additional tariff is below $7,000 based on the car’s price, the minimum of $7,000 will be collected.
Previously, in March 2023, Turkey imposed a 40% additional tariff on electric cars imported from mainland China, raising the total import tariff rate to 50%. In November last year, Turkey also implemented new regulations regarding the maintenance and service of electric cars.
According to Bloomberg’s earlier report, based on a decree issued by the Turkish Ministry of Trade in November last year, companies importing electric cars into Turkey must establish at least 140 authorized service stations nationwide and set up a call center for each brand.
These stringent regulations are seen as targeted actions against the import of cars from China. Import cars from the European Union and countries with which Turkey has signed free trade agreements are not subject to these restrictions.
This regulation undoubtedly impacts companies selling Chinese cars in Turkey. They are seeking revisions or at least a delay in the implementation of the regulation to minimize losses.
An official in Ankara told Bloomberg that these new rules are aimed at regulating this rapidly growing industry to facilitate its orderly development under controlled conditions. The official stated that there are currently no plans to modify or delay the implementation of these rules.
China is Turkey’s largest import source of goods. By November last year, the trade deficit between Turkey and China had expanded to nearly $100 billion. Among them, the import of passenger cars is a major factor contributing to the deficit.
In the first ten months of last year, China exported electric cars worth $184 million to Turkey, almost double the total export value for the entire year of 2022.