Türkiye evaluates impact of new US tariffs on trade and economy

Türkiye is assessing the potential economic impact of new U.S. tariffs, with initial analysis suggesting some short-term advantages, Vice President Cevdet Yilmaz said on Wednesday.

Speaking to reporters at the Turkish Parliament before a parliamentary group meeting of the ruling Justice and Development Party (AK Party), Yilmaz said, “In the first phase, the fact that the tariff is low is a positive. Secondly, these developments are causing a decline in commodity prices. Türkiye is a commodity-importing country, so at this stage, we can say the outlook appears favorable for us.”

Global trade disruptions signal new era

Yilmaz emphasized the broader global implications of the new trade measures, noting that “these events have both global effects and implications for the Turkish economy.”

He described the situation as a dynamic process, stressing that the outcome remains uncertain. “The U.S. has announced tariffs but also indicated it is open to negotiations. We must see where those talks lead,” he said.

Highlighting the need for vigilance, Yilmaz stated, “If the negotiations do not progress well, we will need to closely monitor the retaliatory steps taken by other countries.”

He added that, from the current standpoint, Türkiye appears to be starting from an advantageous position.

Trade relationship with US, future goals

Responding to a question about the 10% tariff expected to be applied to Türkiye, Yilmaz said that dialogue with the United States will continue. We also will engage in negotiations.

Our trade volume with the U.S. has surpassed $32 billion, and we have a balanced trade relationship. However, our leadership has set a target of $100 billion. In the coming period, our trade minister will meet with U.S. counterparts to discuss these developments and explore ways to further grow Türkiye–U.S. trade.”

Yilmaz confirmed that one of the main topics on the agenda of the upcoming Economic Coordination Board meeting will be “the new trade conditions and their impact on our country, and what strategies we will adopt in response.”

Shifting trade landscape and rising competition

Discussing the shifting dynamics of global trade, Yilmaz noted, “A new phase in world trade is beginning. The old trade order no longer applies. A new framework is emerging. We need to recognize that the world can no longer be viewed through old paradigms.”

He added that the restructuring of global trade will have wide-ranging implications. “This process will influence trade policies, investment decisions, logistics, and supply chains,” he said.

“We are talking about a multidimensional issue that also includes service markets and capital flows.”

Yilmaz acknowledged that while falling commodity prices may benefit Türkiye, the changing trade landscape could increase competition in other markets.

“As access to the American market becomes more difficult, countries that previously exported to the U.S. may behave more aggressively in other markets, seeking to compensate for lost shares. This could intensify competition elsewhere,” he said.

He concluded by emphasizing the government’s approach to the evolving situation. “We are analyzing every aspect in detail. In the coming period, the economic administration will evaluate all elements of the issue in a multidimensional way and continue to develop the necessary policies for the positions Türkiye needs to adopt.”