Turkey hikes customs duty on Chinese vehicles by 40% 

Unsplash.com/Michael Förtsch

Turkey will start imposing an additional 40 percent customs duty on vehicles imported from China next month, in an attempt to lower its current account deficit and protect domestic car manufacturers.

The extra tariff will be set at a minimum of $7,000 per vehicle or 40 percent of the import value, whichever is higher, according to a decision published in the official gazette.

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“An additional tariff will be imposed on the import of conventional and hybrid passenger cars from China due to the falling share of domestic production,” the trade ministry said in a post on the messaging platform X, formerly Twitter.

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The decision is in line with current account deficit targets and encourages domestic investment and production. It will be effective from July 7.

Ankara’s current account deficit reached $45.2 billion in 2023.

In April, data from the Automotive Distributors and Mobility Association showed that the domestic EV brand Togg dominated sales in the country during the first quarter of 2024, with 4,145 units sold.