Turkey Imposes 40% Tariff on Chinese Car Imports to Curb Market Influx

Imported Chinese cars now face a stiff new tariff in Turkey, which amounts to 40% or a minimum of US$7,000 (approx. RM32,935).

Turkey has recently announced a significant increase in tariffs on imported Chinese automobiles, elevating the rate to 40%. The Turkish government reportedly cites the move stems from a need to curb the influx of Chinese vehicles into the country and protect its domestic automotive industry. 

This move comes amid growing concerns about the competitive pressure exerted by Chinese automakers in Turkey's market. The new tariff policy, which starts next month from July 7, aims to level the playing field for Turkish and other non-Chinese carmakers operating within the country.

Over the past few years, Chinese brands have gained substantial traction in Turkey, leveraging their cost-effective pricing and diverse range of models. This surge has led to apprehensions about the long-term impacts on Turkey’s automotive sector, which has a robust manufacturing base and significant local employment.

The Turkish government’s decision reflects its strategic goal to bolster the local industry and safeguard jobs. By raising the import duty, Turkey seeks to reduce its trade deficit and foster a more balanced automotive market.

A number of key brands such as BYD and Chery - both present in the Turkish market - are set to experience significant price hikes on their products as a result.

In turn, the new tariffs is poised to benefit Turkey's homegrown Togg brand, plus scores of other foreign automakers that have manufacturing bases in said nation.

Besides a set percentage, the scheme goes a step further by targeting low-cost imported Chinese cars and slapping them with a minimum duty of US$7,000 (approx. RM32,935) per vehicle should the stipulated 40% tariff figure not equate to US$7,000.

The new tariff will apply across all Chinese car imports, regardless of the manufacturer, indicating Turkey’s comprehensive approach to addressing the competitive threat posed by Chinese vehicles.  This measure is expected to impact major Chinese car brands such as Chery, BYD, and Geely, which have been expanding their presence in the Turkish market.

Industry analysts suggest that while the increased tariff might lead to higher prices for Chinese cars, it could also prompt Chinese manufacturers to consider local production to circumvent the tariffs.  This potential shift could result in new investments in Turkey’s automotive sector, ultimately benefiting the economy.

Overall, Turkey’s decision to raise tariffs on Chinese car imports underscores the nation’s intent to protect its automotive industry while navigating the complexities of global trade dynamics. KR