Türkiye’s trade to remain resilient against Trump tariffs, says finance minister

Türkiye’s Minister of Treasury and Finance, Mehmet Simsek, stated that the country could be more resilient to global trade divisions, predicting that the country would not be significantly affected by tariffs imposed by U.S. President Donald Trump.

“Approximately 62% of our trade is with parties we have free trade agreements with, and 80% is with the European Union (EU), Central Asia, the Middle East, and North Africa. Therefore, I believe we are relatively less vulnerable,” Simsek said.

Simsek made his remarks during a panel titled “The Rise of Multiple Economic Blocs” at the World Government Summit held in Dubai on Wednesday, Feb. 12.

Highlighting Türkiye’s ongoing three-year economic program, Simsek said the program was on track:

We are ensuring budget discipline and progressing through a disinflation process. Inflation is decreasing. We are referring to a combination of tight monetary policy, fiscal policy, and an extensive structural reform agenda. These are crucial both in the short and long term. We maintain our policy determination, and I believe progress is strengthening.

‘Regional integration is key’

Regarding the Turkish lira’s performance against the U.S. dollar, Simsek said it was understandable for the lira to weaken nominally due to high inflation. He added, “However, from the perspective of the real effective exchange rate, the lira has been one of the better-performing currencies because disinflation programs provide some degree of appreciation, which has occurred with the lira.”

He further noted the significant improvement in Türkiye’s current account balance, stating that the current account deficit had narrowed to 0.6% of the gross domestic product (GDP).

Simsek highlighted that Türkiye’s reserves had increased by approximately $126 billion over the past 1.5 years, establishing buffers against economic shocks.

Despite the lack of political will within the EU, Türkiye continues its membership process and remains fully integrated with other organizations, including the Customs Union, the Council of Europe, and NATO, he stated.

Emphasizing Türkiye’s commitment to regional integration, Simsek said:

That is why we aim to sign a free trade agreement with the Gulf Cooperation Council (GCC) and support stability in Syria. We have good relations with Russia, but Europe remains our main partner. Despite some political doubts, our ties with Europe are solid. On the other hand, BRICS is a dialogue platform, and so is the G20. These are not customs unions or free trade areas. Therefore, we should not overthink them but recognize that the world is changing. In my view, regional integration is crucial to address vulnerabilities caused by fragmentation.

The World Government Summit 2025 opened on Tuesday in the United Arab Emirates (UAE), gathering leaders and officials from around the globe.

Approximately 30 heads of state and government, along with 140 government delegations, 400 ministers, and about 6,000 participants, are expected to attend around 200 panel discussions.