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Cars Coming From China In Trouble In Turkey As They Impose Additional Tariffs
In 2023, Turkey imposed additional tariffs on Chinese EVs and introduced a couple of regulations regarding maintenance and after-market service. Now, the country is imposing 40% tariffs on all Chinese car imports to protect its local production.
In an official statement, the trade ministry said the hefty tariffs are required to protect domestic production and improve the country’s $45.2 billion deficit from last year. The new 40% tax applies to conventional and hybrid passenger cars from China. There’s also a tax minimum of $7,000 if the calculated tax is lower.
China is facing trade pressures from around the world, including the EU. Soon, the European Commission is expected to decide whether the EU should impose tariffs against Chinese automakers as well.
The reason is the heavily subsidized sector by the Chinese government, and as a result, imported Chinese EVs are cheaper and are slowly displacing local production due to unfair advantages. On the other hand, if a Western company wants to do business in China, it’s obligated to do so by creating a joint venture with a local Chinese company. This is a big discrepancy in how business is done in China and Europe, for example, and thus creates unfair market conditions.
