U.S. President Donald Trump has implemented a decision to increase customs tariffs on all steel and aluminum imports. This decision creates both opportunities and challenges for countries exporting steel to the U.S. From Turkey’s perspective, there are two sides to this situation.
Positive Aspects:
According to Trump’s decision, the 25% tariff on steel imports to the U.S. will apply to all countries. This could work to Turkey’s advantage since Turkey has already been subject to this 25% tariff on its steel exports to the U.S. since 2018. With this new tariff being applied to other countries, particularly those that had exemptions like Canada, Mexico, and Brazil, Turkey could have a competitive advantage. Turkey’s market share, particularly in cold-rolled and galvanized steel, may increase. Commodity analysis company Argus Media predicts that Turkey will see growth in these products.
Negative Aspects:
However, the new tariffs could also bring challenges. Countries that lose access to the U.S. market will look for alternative markets, and these markets may increase competition for Turkey. For instance, countries that export significant amounts of steel may increase competition in the Middle East and Asia. Steel analyst Kaye Ayub states that this could force Turkey to compete with major producers like China. Additionally, countries like South Korea, Japan, and Vietnam may look to Turkey as an alternative market.
Turkey’s Strategic Goals:
Çelik İhracatçıları Birliği (ÇİB) Vice President Uğur Dalbeler points out that the decisions of the U.S. continue to create uncertainty. The U.S. market is not as crucial for Turkey as the European market, and due to declining demand in Europe, Turkey aims to increase its share in the European market. Furthermore, Turkey plans to focus on new markets in Africa and Latin America.
Europe’s Response:
The European Commission has announced that it considers the U.S. tariffs on steel and aluminum to be unfair and will implement countermeasures. These measures will be enforced starting April 1, and the initial phase will involve countermeasures worth 8 billion euros. The second phase, which will respond to tariffs affecting more than 18 billion euros of EU exports, will be introduced on April 13. Additionally, the European Commission will make changes to the protection quotas for steel imports, which may particularly affect suppliers like Turkey, Japan, and Vietnam.
Conclusion:
The increase in U.S. steel tariffs creates both opportunities and challenges for Turkey. While Turkey may benefit from the tariffs applied to other countries, it must also face increased competition in alternative markets. Developments in Europe and other regions will significantly influence Turkey’s export strategies.
