Trump tariffs could threaten $100B US-Türkiye trade goal: Presidential Finance Office

The head of the Turkish Presidential Finance Office, Goksel Asan, said he does not anticipate U.S. President Donald Trump’s tariff policies to have a significant direct impact on Türkiye.

“We do not expect it to affect Türkiye as much as China, Mexico, and Canada,” Asan said during an interview with Anadolu Agency on Tuesday.

However, he cautioned that if the wave of tariffs were to extend to other export products in which Türkiye holds a significant share of U.S. imports, it could threaten the bilateral trade volume target of $100 billion.

“Tariffs could also have an indirect impact through Europe. If they further fuel the ‘stagnation’ in European economies, an indirect effect might occur,” he added.

Asan noted that markets dislike uncertainty, which can trigger various economic issues. He described the 2008 financial crisis as a critical turning point and expressed his belief that the crisis has not yet fully ended.

Impact of protectionist policies

Commenting on the potential impact of Trump’s protectionist policies in the U.S. market, Asan explained that when a tariff is imposed on a product, domestic prices for that product inevitably rise. However, he acknowledged that the long-term effects could be positive, with protected sectors potentially experiencing growth within the U.S.

He also warned about the risk of reduced efficiency in protected sectors. “If you protect a sector, it loses the motivation to become more efficient and productive,” he said. “Any tariff, in one way or another, reduces the welfare of the people living in that country.”

Asan emphasized that the primary target of the tariffs is China. “The real concern for the U.S. is the significant trade imbalance with China. I don’t believe this is solely driven by Trump’s influence,” he noted.

‘Syria could adopt Turkish regulations for digital banking’

Asan highlighted that Türkiye is focusing on financial technology (fintech) and participation finance in its international financial relations. He stressed the need for the private sector to adapt, particularly in the field of sustainable finance.

He mentioned ongoing steps toward international cooperation in the participation finance sector, with a particular emphasis on the Turkic world. He recalled the establishment of the Turkic States Fintech Cooperation Platform.

“The Turkic family is an important alternative for us. The geographical location of the Turkic world is exceptionally valuable, and it has a strong human resource base. Therefore, I see the Turkic family as a significant opportunity. We maintain close contact with Turkic states and, for instance, are working on extending the joint listing initiative with the Azerbaijani stock exchange to other countries,” he said.

Regarding Syria‘s prospective financial system, Asan suggested that Syria could significantly accelerate its progress by adopting Türkiye’s regulatory framework for open and digital banking instead of establishing a traditional banking system from scratch.

“By following this path, Syria could achieve in three to five years what might otherwise take 20 years. Such a system, built at a low cost, would also require fewer human resources, which is crucial given that much of Syria’s skilled workforce is currently abroad,” he explained.

Asan also indicated that Türkiye is prepared to support Syria in establishing its financial system.