US unlikely to impose protectionist measures against Türkiye: Şimşek

ISTANBUL

Commenting on the economic measures the new Trump administration has been taking, Finance Minister Mehmet Şimşek said the direct risks to Türkiye “are very low.”

There has been a $78 billion trade deficit in favor of the U.S. in Türkiye’s trade with the U.S. in the last 20 years, Şimşek said in an interview with private broadcaster TV 100 on Feb. 8, noting that Türkiye does not have a free trade agreement with the U.S.

“The U.S. is already imposing high taxes on us. There is no reason to further increase these taxes,” the minister added.

“In this respect, two things remain to consider: First, the U.S. tariff hikes may have indirect effects,” he said.

Secondly, the U.S. could take some politically motivated steps, according to the minister.

“But we have good relations with the new U.S. administration. The dialog and relations between our President [Recep Tayyip Erdoğan] and the U.S. President [Donald Trump] are good,” he furthered.

Şimşek said he did not believe the U.S. administration would consider imposing special protectionist measures against Türkiye.

Elaborating on the outlook of the Turkish economy the minister said that the most difficult period has been put behind.

“We have some macroeconomic issues. But we have brought a significant portion of those problems to a much more manageable level. Some problems require time to resolve. We will achieve this, we have time,” he said.

Inflation is falling, the budget deficit is decreasing, the current account deficit is at a sustainable level, and reserves are sufficient, Şimşek added.

Inflation will decline to around 24 percent this year, due to a strong policy framework, which encompasses monetary, fiscal, revenue, administered prices and supply-side policies, he said.