Türkiye can flip the latest wave of worldwide tariffs into a possibility, Finance Minister Mehmet Şimşek mentioned, citing restricted commerce publicity to the U.S. and falling oil costs as elements that will assist the nation stand out amongst rising markets.
In an interview with the Financial Times, Şimşek mentioned Türkiye, as an power importer, is poised to profit from narrowing present account deficits, which might assist enhance international reserves and help anti-inflation efforts.
“These are all constructive developments,” Şimşek mentioned and added: “Once the dust settles, we hope – and we believe – that Türkiye will be viewed by investors as more resilient compared to other fragile markets.”
While U.S. President Donald Trump’s administration lately imposed a ten% baseline tariff on Turkish exports, Şimşek mentioned the nation is comparatively properly positioned. He famous that Türkiye’s $1.3 trillion economic system depends closely on commerce with nations which have free commerce agreements, equivalent to these within the European Union, the Middle East, Central Asia and North Africa.
According to Şimşek, roughly 80% of Türkiye’s commerce is carried out with these companions, whereas commerce with the United States accounts for under about 5% of Türkiye’s whole.
The finance minister additionally burdened that slowing world progress and tight home financial coverage are producing disinflationary results, which align with Türkiye’s objectives of taming inflation.
“Price stability, predictability, and an improved investment climate are my priorities,” he mentioned, including that Türkiye’s financial stability is determined by the continuation of structural reforms.
Trade Minister Ömer Bolat known as the tariffs on Türkiye the “best of the worst,” given greater levies on different nations, however nonetheless mentioned that the federal government wished to barter with the U.S. to carry the brand new levies.
Turkish exports to the U.S. have been $16.7 billion in 2024, in keeping with the Office of U.S. Trade Representative. It imports an identical degree of products and companies from America.
This degree is dwarfed by exports to the EU, which, President Recep Tayyip Erdoğan mentioned in January, reached $108.7 billion final 12 months.
Source: www.dailysabah.com