Some foreign firms may turn to Türkiye for investment amid Trump tariffs

ISTANBUL

Companies from Europe and the Far East that are subject to higher U.S. tariffs than Türkiye might consider investing in Türkiye, says Şekib Avdagiç, president of the Istanbul Chamber of Commerce (İTO).

The U.S. imposed a 10 percent tariff on Turkish imports.

Due to additional customs duties, the U.S. might prefer to buy goods from Türkiye, which could lead to an increase in direct investments in Türkiye, especially from Europe and China, according to Avdagiç.

Avdagiç pointed out that direct investments could be a significant opportunity for foreign companies to reposition themselves in Türkiye.

"Türkiye’s ability to take advantage of this opportunity will depend on its efforts to develop export sectors and its strategy for finding new markets,” he furthered.

Despite potential opportunities Türkiye could seize, Avdagiç voiced caution due to the experience Türkiye had during U.S. President Donald Trump’s first term in office.

He reminded that in 2018, the U.S. doubled the tariffs on steel and aluminum imports from Türkiye.

“This is still a fresh memory and shows that we must be cautiously optimistic,” Avdagiç said.

“Alongside the 10 percent Trump tariff, the resumption of the Türkiye-EU High-Level Economic Dialogue after six years could position Türkiye in a new and influential role within the global economic and political system,” Avdagiç said.

The Trump tariffs show that the U.S. appears to have a positive approach toward Türkiye, commented Erdal Bahçıvan, president of the Istanbul Chamber of Industry (İTO).

Noting that tariffs average around 25 percent for countries like China, Japan, the EU, and South Korea, while Türkiye faces only a 10 percent tariff, he said that this could improve Türkiye’s competitiveness in both investment and foreign trade.

“This new period may bring opportunities but could also pose risks for our economy. Therefore, we need to make sector-specific preparations,” Bahçıvan said.