Turkiye says Trump's tariffs 'relatively favorable'
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Turkiye's Vice President says his country views favorably the largely unpopular tariffs imposed by US President Donald Trump.
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A seller talks to a customer in a street market in Istanbul, Turkey, on September 6, 2023 (AP)
Turkish Vice President Cevdet Yilmaz said Saturday that the new tariffs announced by US President Donald Trump are "relatively favorable" for Turkiye while cautioning that the global economic environment is becoming increasingly protectionist.
Speaking to CNN Turk, Yilmaz noted that Turkiye faces a 10% tariff under Trump's new measures, a figure he described as manageable and even beneficial in the current context.
"For now, this works to our advantage," Yilmaz said. "Rising tariffs are forcing countries selling goods to the US market to aggressively enter other markets, and we need to be cautious. On the other hand, commodity prices have fallen, so in this sense, we can speak of a positive effect."
He stressed the need for vigilance, stating that Turkiye must monitor both the positive and negative impacts of the shifting trade landscape.
Growing protectionism
"The tariffs announced by Trump are relatively favorable for Turkiye. It is absolutely clear that we are transitioning to a protectionist world. We are moving toward a period where each country will defend its own interests," Yilmaz added.
Turkiye is particularly attentive to reactions from China and other major economies, Yilmaz said, anticipating an "aggressive opening of new markets" as countries seek alternatives to the US market.
Yilmaz also highlighted that Trump had expressed openness to discussions, suggesting that trade relations would be a key item on the agenda during the upcoming meeting between the presidents of Turkiye and the US.
Trump sparks trade war
Trump has fanned the flames of the global trade war by imposing a base 10% tariff on all US imports and reciprocal tariffs on Wednesday, which he dubbed "Liberation Day".
The base 10% tariff goes into effect on April 5, and the higher reciprocal levies on April 9.
Facing newly imposed 54% tariffs on exports to the US, China pledged to retaliate with countermeasures, while the European Union also threatened to respond, as both allies and rivals of Washington united in condemning the move, fearing it could deliver a crippling shock to global trade.
"The consequences will be dire for millions of people around the globe," EU Chief Ursula von der Leyen said in a statement, adding that the European Union is planning on retaliating to the levies imposed by Trump should talks with the US falter. The European Union was hit with a 20% reciprocal tariff.
Trump's tariffs sent waves across global markets as traders waited anxiously for the White House announcement.
The US dollar saw a 1% drop against the Euro on April 2, with similar drops against other important currencies like the British Pound Sterling and the Swiss Franc.
US stocks declined in after-hours trading following President Donald Trump's announcement. The SPDR S&P 500 ETF Trust (SPY), mirroring the S&P 500, dropped roughly 2%, while the Invesco QQQ ETF, tied to the Nasdaq-100 Index, fell 3.3%. The SPDR Dow Jones Industrial Average ETF Trust (DIA) also slid 1%.
