Trade Minister Ömer Bolat on Friday urged that the tariffs United States President-elect Donald Trump plans to impose on imports from Mexico, Canada and China might create vital alternatives for Turkish exporters, notably within the equipment and electronics sectors.
Trump has pledged to impose hefty tariffs on main buying and selling companions as quickly as his first day in workplace subsequent month. That has to this point been reserved for China, Mexico and Canada, igniting worries a couple of huge commerce warfare.
Such a transfer would enhance import prices and immediate American firms to search for different suppliers, in keeping with Bolat, who says Turkish exporters might fill the void left.
“Türkiye, with its production capacity, wide range of products and competitive prices, is well-positioned to take advantage of this opportunity,” the minister advised Anadolu Agency (AA).
Analysts have warned that Trump’s insurance policies pose dangers to world commerce. However, Bolat highlighted that regardless of such issues, Türkiye’s exports to the U.S. elevated throughout Trump’s first time period regardless of main challenges, such because the COVID-19 pandemic.
“Türkiye’s exports to the U.S., which amounted to $9.3 billion in 2017, increased by 9.7% despite the COVID-19 pandemic, reaching $10.2 billion in 2020. This indicates that the protectionist policies implemented did not negatively impact the country’s exports as initially expected,” mentioned the minister.
Türkiye’s benefits are manifold, in keeping with Bolat, who cited high-quality requirements, speedy manufacturing capabilities and in depth export expertise within the European market.
These strengths, he says, coupled with compliance with moral manufacturing requirements for items destined for the U.S., place Türkiye as a contender to interchange the market share misplaced by China and Mexico, notably within the textiles and ready-to-wear sectors.
Trump has promised to levy 10% tariffs on all imported items to limit migration and to shortly finish wars going down in Türkiye’s north and south, in Ukraine and the Palestinian territory of Gaza, respectively.
Still, Bolat final month mentioned he anticipated the U.S. to decrease tariffs on Türkiye’s metal and textile exports and hopes the Trump administration will profit protection trade wants, regardless of a previous row over Ankara’s buy of Russian S-400 missile defenses.
Bolat additionally mentioned he anticipated fallout on banks to ease from Washington’s present Russia-related embargoes over Moscow’s warfare in Ukraine.
Trump’s promised commerce and immigration insurance policies might additionally depart Türkiye comparatively unscathed amongst massive rising market (EM) economies equivalent to Brazil, Mexico and China, in keeping with bankers.
Türkiye’s aggressive rate of interest hikes to 50% have helped cool annual inflation to under almost 47.1% final month from above 75% in May. The coverage turnaround that started in mid-2023 has helped elevate web worldwide reserves to over $64 billion from -$5.7 billion, boosted partly by a return of international buyers.
Further elaborating on different sectors the place Türkiye might create options, Bolat mentioned: “The market loss in the machinery and electronics sectors of these three countries could create significant opportunities for Turkish exporters. Turkish companies with medium and high technology in machinery and electrical devices are among the strongest candidates to fill the gap due to their competitive advantages in cost and quality.”
The further tariffs on Mexico and Canada, the 2 largest suppliers to the U.S. automotive sector, in keeping with Bolat, current a big export potential for Türkiye’s globally aggressive auto trade.
The impression of elevated duties on agricultural imports from Mexico and Canada might additionally play to Türkiye’s strengths.
Bolat famous that Türkiye’s broad number of agricultural merchandise might fill the hole. He added that the chemical substances sector, together with plastic merchandise, cosmetics and cleansing merchandise, additionally stands to learn from elevated exports to the U.S.
Trump’s tariffs might open new doorways for Turkish firms, the minister mentioned, including that many international locations, notably these in Southeast Asia, would possible goal the U.S. marketplace for these alternatives.
“To capitalize on this, we need sector-focused strategies, strengthened logistics infrastructure and marketing strategies tailored to American consumer expectations. Türkiye’s rapid production capacity, balance of price and quality, and product diversity give us a competitive edge over other countries,” mentioned Bolat.
“A more detailed assessment can be made once it is clear which products and at what rates the tariffs will be applied.”
Trade quantity between Türkiye and the U.S. stood at $33.5 billion as of 2023, with $14.8 billion being Turkish exports. In the primary ten months of 2024, the commerce quantity reached $28.1 billion, with $13.3 billion being exports, mentioned Bolat, making the U.S. Türkiye’s second largest market.
Key export gadgets embrace textiles, ready-to-wear, protection trade merchandise, equipment, electrical gadgets, mineral merchandise, automotive, greens and fruits.
During his first time period within the White House, Trump and President Recep Tayyip Erdoğan had agreed on a long-term aim of attaining a commerce quantity of $100 billion.
During their cellphone name final month, Erdoğan invited Trump to go to and mentioned he spoke very positively about Türkiye.
The Turkish president mentioned he hoped a go to would strengthen cooperation and result in a relationship “different from (Trump’s) previous term.”
Erdoğan and Trump had nearer private bonds within the latter’s 2017-21 time period as president. It additionally marked a interval of strained bilateral ties as a consequence of disputes over Washington’s help of the PKK/YPG terrorists in Syria and over Ankara’s ties with Moscow.
Erdoğan has additionally made clear Türkiye is able to collaborate with the U.S. to resolve regional crises just like the Russian-Ukrainian battle and Israel’s relentless assaults on Gaza.
Source: www.dailysabah.com