“I have great relations with a man named Erdogan,” United States President Donald Trump stated recently. “I like him, and he likes me. We have never had a problem.”
But his declaration concerning the Turkish President Recep Tayyip Erdogan had not been fairly real. Relations in between both leaders contend times been laden. In October 2019, Trump intimidated to “totally destroy and obliterate the Turkish economy” if the nation really did not follow his desires militarily. In a letter to Erdogan later on that month, Trump contacted him to make a “good deal” relating to armed forces stress in the area, alerting the Turkish leader once more that he would certainly wreck the nation’s economic climate if he chose.
In the last 6 years, Turkey has actually taken a monetary pounding, with the lira shedding substantial worth. In March 2007, one United States buck deserved around 1.30 Turkish lira, while in October 2019 it deserved 5.79, and today it deserves 38.06 lira.
Although Trump might have undoubtedly harmed the Turkish economic climate with previous permissions, both leaders appear to get on much better today than they have in the past. This might be confirmed yet the reality that Turkey was among the nations least impacted by Trump’s brand-new toll plans, with a toll of 10% currently troubled Turkish items. Trump’s 90-day time out on tolls and the basic decrease to 10% for all nations other than China have actually currently placed various other nations on the exact same degree as Turkey for the time being.
A brand-new chance?
While the European feedback to the tolls has actually been unfavorable, Turkish company reps see them as a possibility instead of a situation. They appear persuaded that with the appropriate profession plan, Turkey can take advantage of the brand-new scenario.
The tolls can aid Turkish merchants specifically to obtain a benefit in the extremely affordable United States market, according to Bülent Aymen, replacement head of state of the Association of Mediterranean Furniture, Paper andForest Products Exporters “The US has been our hot market for three years. Our exports are increasing every month. The intensification of the tariff war enables Turkey to gain market share in US sectors such as chemicals, cars, furniture and electronics. We must make good use of this advantage,” Aymen stated.
Trade in between Turkey and the United States totals up to over $30 billion (EUR26.4 billion). After Germany, the United States is Turkey’s 2nd essential trading companion. Turkish exports to the United States have actually climbed by approximately 16% over the previous 5 years, while United States exports to Turkey have actually boosted by 9%. According to the Turkish Exporters Assembly, the nation exported items worth around $21.1 billion (EUR18.6 billion) to Germany in 2023, and made around $14.8 billion from exports to the United States. According to the Turkish Statistical Institute, exports to the United States climbed to $16.3 billion at the end of 2024.
Turkey exports mostly chemical items, automobile components, apparel, carpetings and electronic devices to the United States. It imports over fifty percent of its cotton from the United States– for fabrics that after that wind up exported back to the exact same nation.
Trump’s high tolls versus China and the European Union can boost the presence of Turkish items on the United States market, stated Seref Fayat, the fabric commissioner at the Union of Chambers and Commodity Exchanges ofTurkey “We need to act quickly now. We can use the problems that China, Vietnam and Cambodia are likely to have to our advantage.”
Criticism of Turkey’s profession plan
Fayat is confident concerning the future of profession withTrump’s America “I don’t expect Turkey to be negatively affected by the new situation,” he stated, including that he would certainly recommend working out minimal tariff-free profession with the United States. “This is a very important opportunity. However, we must closely monitor how our most important trading partner, the EU, will be affected by the US tariff policy,” he advised.
But some in Turkey are still just carefully confident. While the possibility exists, numerous Turkish business are not yet all set to make the most of it, stated Murat Aky üz, previous head of state of the Istanbul Chemicals andChemical Products Exporters Association “I see the new US tariff policy as a great opportunity for Turkey. At the same time, I think exporters in Turkey are not sufficiently prepared.” In the past, numerous possibilities were not manipulated since “no sustainable trade policy was pursued,” he included.
Fayat additionally sees possible problems, such as minimal accessibility to Turkish items in the United States because of an absence of profession facilities and storage facilities. “Although Trump announced these tariffs a long time ago, we unfortunately did not make the necessary preparations,” he stated.
A prospective manufacturing center
In enhancement to exports, Turkey can develop itself as a calculated gamer in an additional area: As a manufacturing area for Asian business. Inviting business from China to have their items produced in Turkey would certainly aid them stay clear of high custom-mades responsibilities, for instance. The geopolitical scenario as a bridge in between East and West can prefer such a setup.
“We need to explain to these countries, especially China, the advantages of relocating production to Turkey,” Aky üz stated. “We should actively promote investment in this country. With its infrastructure and skilled labor potential, Turkey is well positioned for this. The Ministry of Trade in particular has a role to play here.”
This write-up was initially created inGerman
