Turkey reduces tariffs on U.S. goods into the country
In August of 2018, President Trump doubled the import tariffs on steel and aluminum from Turkey. Obviously, this caused tension between the two parties. Turkey retaliated with a raise in tariffs on 22 U.S. originating products.
Products involved in spiked tariffs from the U.S. include rice, tobacco, vehicles, alcohol, coal and cosmetics.
On May 16, 2019, President Trump decided to remove the higher tariffs and return to the original agreed upon level. He reduced the tariffs from 50% to 25%.
In response, Turkey has reciprocated the action and reduced its own tariffs on the 22 U.S. products mentioned above. With the tariffs being decreased, both sides are working to boost trade with each other to reach the trade goal they set out for of $75 billion. Turkey finds this to be difficult with its elimination from the GSP program, but the United States believes Turkey and the U.S. can accomplish this goal with steady economic growth.
In the midst of the steel and aluminum tariff cuts, “The White House said it was appropriate to terminate Turkey’s eligibility to participate in the Generalized System of Preferences (GSP) program, based on its level of economic development. The decision is effective May 17, it added.” [Reuters]