Jun 04 2018

Turkey announces retaliatory measures against U.S. tariffs

Turkey will impose retaliatory tariffs on a range of U.S. imports, starting from the June 21 wrote Emre Özpeynirci in Hurriyet newspaper on Monday.

The tariffs are a response to a decision made by the United States to impose tariffs on steel and aluminium imports from many countries, amongst them Turkey. Under the new regulations Turkey, which exported steel worth $1.4 billion and aluminium worth $60 million to the United States last year, will pay tariffs of 25 percent and 10 percent respectively on the two metals.

Turkey will impose tariffs on a range of U.S. imports including automobiles, paper, whiskey, nuts, tobacco and petro-chemical products. The value of the tariffs will be equivalent to the expected cost of the new U.S. import duties, around $250 million.

The highest tariffs will be 40 percent applied to alcoholic beverages and 35 percent on imported U.S. cars and motor vehicles. Among vehicle brands that will affected are models made by U.S. manufacturers Ford, Jeep and electric car maker Tesla, which had announced it would start selling cars in Turkey this year. With the new taxes, the price of a Tesla model S would rise from $43,000 to $57,000 .

German car maker BMW will also be affected as many of its models are made in the United States.