Trump-imposed tariffs rise to 15% on Turkish goods starting now
In a significant move, the Trump administration has imposed new tariffs on Indian goods, increasing duties to 50%, due to continued purchases of Russian oil. This decision comes as part of a broader strategy linking trade penalties to foreign policy decisions, a trend that has been evident since the rollout of these tariffs in April.
The new tariffs, however, do not affect all countries equally. Turkey, for instance, has been placed in a relatively less affected category due to its balanced bilateral trade and mutual investments with the United States. Despite a tariff increase from 10% to 15% effective August 7, 2025, Turkey’s trade with the US remains relatively balanced, with exports and imports between the two countries nearly equal in recent months. This balance lessens the disruptive effect of the tariff increase.
Turkey, along with the European Union, Japan, and South Korea, now falls in the 15% tariff bracket. Interestingly, Turkey's moderate tariff rate may even offer Turkish exporters some competitive advantage over exporters from countries with higher US tariffs.
The European Union continues to seek exemptions for certain sectors, most notably its wine exports. A letter from U.S. wine importers recently urged the administration to exclude the sector, noting that wine sales can account for up to 60% of gross margins for full-service restaurants.
The U.S. trade deficit narrowed by 16% to $60.2 billion in June, its lowest level since September 2023. However, the implementation of the new tariffs has reopened questions about the status of recently negotiated trade deals.
The tariff order on Indian goods includes warnings that similar penalties may be applied to other countries importing Russian energy. Meanwhile, Japan had expected a reduction in U.S. duties on auto exports, but no date has been set for the change, and Japanese vehicles currently remain subject to a 25% sector-specific rate.
Notably, exemptions were granted for Brazilian orange juice and civil aircraft, softening the overall impact of the tariffs. The U.S. has also imposed 50% tariffs on a range of Brazilian products, citing political tensions over the trial of former President Jair Bolsonaro.
The tariffs do not apply to sector-specific imports already subject to separate regulatory regimes, including steel, automobiles, pharmaceuticals, and microchips. In a separate statement, Trump signaled plans to introduce a 100% tariff on semiconductors, exempting global titans already investing in U.S. manufacturing, such as Samsung and TSMC.
In 2024, U.S. imports from Turkey totaled $16.35 billion while the exports stood at $16.22 billion, bringing the total trade volume to $32.57 billion with an approximate trade deficit of $125 million. Despite this, Turkey was included among the countries subject to the baseline tariffs since its first unveiling in April, due to its relatively balanced bilateral trade with the United States.
It is clear that the new tariffs are reshaping global trade dynamics, with some countries facing harsher consequences than others. The situation is evolving rapidly, and it will be interesting to see how these changes impact the global economy in the coming months.
- The Tariffs imposed by the Trump administration on Indian goods do not directly affect Turkey, as it is placed in a relatively less affected category due to its balanced bilateral trade with the United States.
- Turkey, along with the European Union, Japan, and South Korea, now fall in the 15% tariff bracket, which may offer Turkish exporters a competitive advantage over exporters from countries with higher US tariffs.
- Despite having a trade deficit of approximately $125 million in favor of the United States, Turkey was included among the countries subject to the baseline tariffs due to its relatively balanced bilateral trade.
- The European Union continues to seek exemptions for certain sectors, most notably its wine exports, noting the significant impact on gross margins for full-service restaurants.
- The U.S. has imposed 50% tariffs on a range of Brazilian products, citing political tensions over the trial of former President Jair Bolsonaro, while exemptions were granted for Brazilian orange juice and civil aircraft.
- The tariff order on Indian goods includes warnings that similar penalties may be applied to other countries importing Russian energy, highlighted as a potential risk for Turkey, a key player in the European Union and a country that maintains ties with Russia.
