President Recep Tayyip Erdoğan on Wednesday mentioned Türkiye is anticipated to be much less affected by a “severe storm” he mentioned gave the impression to be coming after U.S. President Donald Trump’s “reciprocal” tariffs on dozens of nations took impact, escalating a worldwide commerce conflict.
Trump’s punishing tariffs, together with large 104% duties on Chinese items, have shaken a worldwide buying and selling order that has persevered for many years, raised fears of recession and wiped trillions of {dollars} off inventory markets.
Türkiye is among the many economies topic to the bottom U.S. tariff of 10% and is considered as being amongst a handful of nations rising as potential winners.
Erdoğan mentioned the worldwide system was “fundamentally cracking,” and that the world is witnessing the “rise of a more protectionist structure,” which he mentioned is changing the neoliberal financial and political order.
“It is clear that trade wars, reignited through tariff increases, will have global repercussions. It would not be an exaggeration to say that a severe storm is coming, one that will impact everyone, large and small,” Erdoğan instructed his ruling Justice and Development Party (AK Party) lawmakers.
According to the president, Türkiye is among the many international locations greatest positioned to learn and handle the “painful” international transition in financial system and worldwide politics, each on the negotiating desk and within the discipline.
“Türkiye is becoming one of the founding actors of this new era. We are already beginning to see the signs of this transformation,” Erdoğan mentioned.
Türkiye, whose iron, metal and aluminum exports took successful from earlier U.S. tariffs, now stands to learn as different international merchants endure even increased levies.
Government officers have additionally identified the potential advantages of being a comparatively cheaper supply of products.
Erdoğan mentioned Türkiye will not be anticipating a adverse state of affairs for its commerce, manufacturing and exports on account of the tariffs, which went into impact on Wednesday.
“We suppose that we’ll overcome this era extra simply than many international locations since we’re one of many low-tariff international locations,” he famous.
Erdoğan mentioned the federal government’s financial program had made it resilient to exterior shocks and that it anticipated stronger financial progress within the medium to long run in comparison with peer international locations.
“There is severe uncertainty on this planet, however there’s a robust financial program that illuminates Türkiye’s path,” Erdoğan added.
“In the medium to long term, we expect Türkiye to achieve stronger growth compared to similar economies.”
The slowdown in worth progress, the precedence of the federal government’s medium-term program, is ongoing, Erdoğan mentioned.
The program, carried out since mid-2023, had centered round tight financial coverage, primarily geared toward curbing cussed inflation, which slowed to 38.1% in March.
It marked the bottom since December 2022 and prolonged the autumn from a peak of round 75% final May.
The Turkish central financial institution has initiated an easing cycle and reduce its coverage charge to 42.5% progressively prior to now three scheduled conferences. Before that, it raised the speed by 4,150 foundation factors to chill inflation.
“The delayed effects of monetary policy, stronger fiscal support, and supply-side reforms will further drive inflation downward,” mentioned Erdoğan.
“We are maintaining a disciplined fiscal stance. The spending discipline and savings measures we initiated last year will continue this year as well.”
Source: www.dailysabah.com