Steel & Aluminum Tariffs from Turkey Increased
Last week, President Trump announced he would double import tariffs on steel and aluminum from Turkey increasing the rate from 10% to 20% and 25% to 50% for each product respectively.
I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!
— Donald J. Trump (@realDonaldTrump) August 10, 2018
According to the New York Times, Mr. Trump’s “action came amid worsening relations with Turkey, which has continued to detain an American pastor on espionage charges despite the United States’ insistence that he be released.” However, it is notable that White House spokeswoman Sarah Sanders told reporters that sanctions were imposed “on two top officials in Turkish President Tayyip Erdogan’s Cabinet as part of its efforts to pressure Turkey into freeing Brunson.”
Sanders went on to state, “‘Brunson’s release would not lead to an easing in the tariffs, but that it could lead to an easing in sanctions. The tariffs that are in place on steel will not be removed with the release of pastor Brunson. The tariffs are specific to national security,’ she said. ‘The sanctions, however, that have been placed on Turkey are specific to pastor Brunson and others that we feel are being held unfairly, and we would consider that at that point,’ Sanders added.” [Source]
Turkey took Trump’s action as an attack on its economy and announced retaliation tariffs on American goods targeting U.S. cars, alcohol and tobacco, as well as U.S. electronics, singling out iPhones. Below is a great chart showing the U.S. sectors that are affected.
CHART: What U.S. sectors is Turkey🇹🇷 really targeting with retaliatory tariffs?
#1 Minerals: coal, petcoke, coke ($0.8B)
#2 Wood and paper ($0.3B)
#3 Chemicals ($0.2B)
#4 Nuts ($0.2B)
#5 Cars ($0.1B)
#6 Tobacco ($0.05B)
via #ITCdata; list: https://t.co/ajmGyrhUZe pic.twitter.com/NZG7YfkzkC
— Trade News Analysis (@TradeNewsCentre) August 15, 2018
Did you know?
American Journal of Transportation threw out these interesting facts that are all affected by this move.
- “The U.S. was Turkey’s fourth largest trading partner last year with $21 billion in commerce, behind Germany, China and Russia.”
- “Steel was Turkey’s fourth-largest export last year, valued at $11.5 billion and accounting for about 7 percent of total exports, according to the country’s Steel Exporters’ Association. Turkey ranks as the world’s eighth-biggest steel producer.”
- “While the U.S. was the top destination for Turkish steel exports last year, it tumbled to third place in the first half of this year as earlier tariffs diminished the trade.”