Turkey Imposes $7,000 Minimum Fees to Curb Chinese Vehicle Imports

Turkey Imposes Stricter Tariffs on Chinese Vehicle Imports

Turkey has announced a significant policy shift aimed at curbing vehicle imports from China through the imposition of additional customs duties. As per a recent presidential decision published in the Turkish Official Gazette, the country will impose a new tariff of 40% on car imports from China. A notable clause of this decision sets a minimum additional fee of $7,000 per vehicle, even if the 40% duty is less than this amount. This change will come into effect starting July 7.

The move comes after Turkey had already increased customs duties on Chinese electric vehicles (EVs) earlier in 2023. This adjustment is geared towards supporting local EV manufacturers and reducing the reliance on imported cars. In support of this, Turkey has introduced various regulations concerning the maintenance and services of electric vehicles to optimize the local market.

Electric vehicles have been gaining a notable market share in Turkey, accounting for 7.5% of total vehicle sales in 2023. Projections by Turkey's Energy Market Regulatory Authority indicate that the number of electric vehicles may increase by about 180,000 by 2025, with expectations that EVs will represent 30.4% of domestic car sales by 2032.

The new tariffs are also part of broader government efforts to address economic challenges including high inflation and the current account deficit. The Turkish government is employing a restrictive monetary policy and other financial measures to tackle inflation, which soared to approximately 75.5% by the end of May. Through these steps, Turkey aims to stabilize its financial position and narrow the current account deficit.