In a significant move reflecting warming ties, Turkey has decided to lift retaliatory tariffs on various U.S. imports, including passenger cars and fruit, which were initially imposed in 2018. This development comes as Turkey’s President, Tayyip Erdogan, visits the United States for the United Nations General Assembly and plans to meet with U.S. President Donald Trump. The termination of these tariffs was formalized in Turkey’s Official Gazette, indicating a step towards strengthening bilateral relations.
Historically, under President Trump’s administration earlier this year, the United States has taken a firm stance on trade, instigating tariffs to gain favorable trade conditions. In response, Turkey had initially set tariffs in 2018 following U.S. actions targeting steel and aluminum imports. However, despite the U.S. imposing a 15% tariff on Turkish imports as recently as August, Ankara has not issued a retaliatory response to this measure.
Erdogan and Trump have had a complex relationship, characterized by both personal rapport and challenges over geopolitical disagreements, like U.S. support for Kurdish fighters in Syria and Turkey’s acquisition of Russian S-400 missile systems, which saw Turkey being ousted from the F-35 program. Despite these tensions, trade remains a common ground, with both nations aiming to achieve a target of $100 billion in annual bilateral trade. Last year, trade volumes between the two countries were approximately $30 billion.
According to Turkey’s trade ministry, the policy shift results from ongoing negotiations with the U.S. and the desire to enhance trade relations. The removal of these tariffs aims to foster an economic environment beneficial to both sides and pave the way for new cooperative ventures. Turkey is keen on developing strategies that diversify trade relations, improving competitive conditions, and encouraging innovative partnerships.
This development marks a hopeful progression in U.S.-Turkey relations, underscoring the significance of trade diplomacy in bridging geopolitical differences and fostering economic collaboration.