Türkiye can flip the latest wave of worldwide tariffs into a possibility, Treasury and Finance Minister Mehmet Şimşek stated, citing restricted commerce publicity to the U.S. and falling oil costs as components which will assist the nation stand out amongst rising markets.
In an interview with the Financial Times, Şimşek stated Türkiye, as an vitality importer, is poised to profit from narrowing present account deficits, which might assist increase international reserves and assist anti-inflation efforts.
“These are all constructive developments,” Şimşek stated 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 not too long ago imposed a ten% baseline tariff on Turkish exports, Şimşek stated the nation is comparatively nicely positioned. He famous that Türkiye’s $1.3 trillion economic system depends closely on commerce with international locations which have free commerce agreements, resembling 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 complete.
The finance minister additionally confused that slowing international 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 stated, including that Türkiye’s financial stability is dependent upon the continuation of structural reforms.
Trade Minister Ömer Bolat known as the tariffs on Türkiye the “best of the worst,” given larger levies on different international locations, however nonetheless stated that the federal government needed to barter with the U.S. to elevate the brand new levies.
Turkish exports to the U.S. have been $16.7 billion in 2024, in line with the Office of U.S. Trade Representative. It imports an identical stage of products and providers from America.
This stage is dwarfed by exports to the EU, which, President Recep Tayyip Erdoğan stated in January, reached $108.7 billion final yr.
Source: www.dailysabah.com