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President Recep Tayyip ErdoΔan removed additional tariffs on certain U.S.-made products, including automobiles, ahead of his meeting with U.S. President Donald Trump.
The Presidential Decree was published in the Official Gazette, saying that no additional taxes will be imposed on imports of U.S.-origin products such as passenger cars, cosmetics and skin care products, leaf tobacco, and alcoholic beverages.
Ankara had imposed additional taxes on these products in the summer of 2018 during tensions with Washington over the detention of U.S. pastor Andrew Brunson in Turkey during Trump's first term as president.
Meanwhile, another tax decision was issued by the Trade Ministry. Imports of passenger cars from nations outside the European Union and those with which Turkey has a free trade agreement were subject to new additional taxes.
According to the decision, passenger cars imported from these nations will be subject to a 25% tax or a minimum of $6,000 (whichever is higher) for conventional and hybrid (but not plug-in) cars, 30% or at least $7,000 (whichever is higher) for plug-in hybrid vehicles, and 30% or at least $8,500 (whichever is higher) for electric vehicles.
This is in accordance with World Trade Organization regulations and international commitments.
The decision will take effect in two months.
With this decision, customs duty rates on hybrid, plug-in hybrid, and electric vehicles manufactured in China and Japan have increased.
Automotive Distributors and Mobility Association (ODMD) President Ali Haydar Bozkurt said the decisions created significant uncertainty in the sector.
