Turkiye's Economic Advantage in Trump's Tariff Era

Turkiye navigates potential advantages and challenges amid Trump's tariff regime. With a lower tariff rate, it eyes strategic opportunities in trade realignment. Finance Minister Simsek highlights limited domestic impact and free trade agreements, while business leaders suggest new investments could boost economic resilience against negative effects from EU and US trade dynamics.

As the global economy adjusts to President Donald Trump's tariffs, Turkiye sees potential benefits beyond the challenges. Impacted by a baseline 10 per cent tariff, Turkiye's Finance Minister Mehmet Simsek highlighted a limited impact on the economy due to its focus on domestic demand and numerous trade agreements outside the US.

Simsek noted Turkiye could leverage its relatively lower tariffs to gain competitive advantages. Analysts like Can Selcuki caution about potential negative effects due to Turkiye's role as an exporter of intermediate goods, especially to the EU, which faces higher tariffs exporting to the US.

Despite these concerns, Turkiye aims to exploit the situation. Business leaders suggest it could attract investments and production relocations. Sekib Avdagic of the Istanbul Chamber of Commerce and others assert that Turkiye's strategic position and manufacturing prowess could make it a pivotal player in the shifting global trade landscape.

(With inputs from agencies.)