Turkey hikes tariff on Chinese electric cars by 40% to curb deficit
According to Bloomberg, Turkey will raise the tariff on all-electric vehicles purchased from China by 40 percent. This move aims to limit imports and reduce the current account deficit, which is expected to help combat high inflation. In May, inflation was 75.5 percent higher than the previous year.
9:21 AM EDT, June 9, 2024
As Bloomberg reports, Turkey will raise the tariff on all-electric vehicles purchased from China by 40 percent. By raising tariffs, the country aims to limit the import of Chinese electric vehicles and reduce the current account deficit.
According to a decree published in the Turkish Official Gazette, the imposed tariff will be at least $7,000. The decision will take effect 30 days after publication.
Last year, Turkey also raised the tariff on Chinese electric vehicles to support the production of the country's first electric car.
The Turkish national electric car is called TOOG. It is an acronym for Türkiye’nin Otomobili Girişim Grubu A.S, the Turkish Automotive Initiative Group. The consortium was founded in 2018. The first unit rolled off the production line in April last year and went into the hands of President Recep Tayyip Erdogan.
This time, the increase in the tariff on Chinese electric vehicles is intended to help address the problem of high inflation, which at the end of May reached around 75.5 percent. Turkish policymakers continue tightening monetary policy, while simultaneously strengthening their fiscal position and reducing the current account deficit.
