Turkey imposes 40% tariff on Chinese electric vehicles to curb deficit

According to Bloomberg, Turkey will raise the tariff on all-electric vehicles purchased from China by 40 percent. This is how Erdogan's country wants to limit imports and reduce the current account deficit, which is expected to help fight high inflation. In May, it was 75.5 percent higher than the previous year.

As Bloomberg reports, Turkey will raise the tariff on all-electric vehicles purchased from China by 40 percent. Raising tariffs aims to limit the import of Chinese electric cars and reduce the current account deficit.

According to the decree published in the Turkish Official Gazette, the imposed tariff will be at least $7,000. The decision will take effect 30 days after publication.

Let us recall that last year, Turkey also raised the tariff on Chinese electric vehicles to support the production of the country's first electric car.

The Turkish national electric car is called TOOG. It is an acronym for Türkiye’nin Otomobili Girişim Grubu A.S., the Turkish Automotive Initiative Group. The consortium was founded in 2018. The first unit rolled off the production line in April last year and went into the hands of President Recep Tayyip Erdogan.

This time, the increase in the tariff on Chinese electric vehicles is intended to help solve the problem of high inflation, which at the end of May reached around 75.5 percent. Turkish policymakers are continuing to tighten monetary policy while simultaneously strengthening their fiscal position and reducing the current account deficit.