Turkey increases tariff on US goods

The hikes were published in Turkey's Official Gazette in a decree signed by President Recep Tayyip Erdogan, who has repeatedly described the crisis as an "economic war" that Turkey will win.

Published: 15th August 2018 04:11 PM  |   Last Updated: 16th August 2018 03:16 AM   |  A+A-

Tourists count their Turkish liras after exchanging foreign currency at a exchange shop in Istanbul, Monday, Aug. 13, 2018. (Photo | AP)

By Express News Service

NEW DELHI:  Amidst the ongoing trade and diplomatic war between two NATO allies — Turkey and the United States (US) — Turkey’s government on Wednesday announced increase in tariffs on US-imported products such as cars, alcohol and cigarette. The move will raise duties on American alcohol to 140 per cent, cars to 120 per cent and tobacco leaves to 60 per cent. It has also announced doubling of tariffs on rice, cosmetics and coal. 

Turkish President Recep Tayyip Erdogan also urged his citizens to boycott US electronic goods, including Apple’s iPhone, in favour of South Korea’s Samsung and local brands.The hike in tariffs of made-in-US products comes at a time when Turkish lira tumbled by more than 40 per cent against the dollar since the start of this year, in what Erdogan calls an “economic warfare” on part of the US.  The tariffs rose significantly in last one week after US President Donald Trump’s announcement of sanctions and tariffs on Ankara last week over the detention of American evangelical pastor Andrew Brunson. 

Brunson has been held in Turkey since 2016 on charges of spying and involvement in the country’s failed coup that took place two years ago.After a failed negotiation between delegations of the two countries, Trump had on Friday tweeted that he would double tariffs on Turkish steel and aluminum. The US announcement, coupled with rising inflation in the country and Erdogan’s reluctance to increase lending rates, degraded lira’s value by 30 per cent in the next three days, which impacted currencies of Asian nations and the Euro. 

Indian rupee too nosedived and breached the 70-mark for the first time against the US dollar because of the continued turmoil in Turkey, among other reasons. Lira, however, saw some recovery in the last two days after Turkey’s banking regulator issued statements on Tuesday to try to ward off a crisis. The steps spurred a nearly 3 per cent gain in the lira to 6.09 per dollar, after an 8.4 per cent advance on Tuesday. 

According to International Monetary Fund data, the US was the fourth largest source of imports to Turkey last year, accounting for $12 billion of imports. Turkey’s exports to the US last year stood at $8.7 billion, making it Turkey’s fifth-largest export market.  Some estimates say that Turkey’s new tariffs affected around $1 billion of imports last year.

Stay up to date on all the latest World news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp