Türkiye Imposes Sweeping New Auto Tariffs to Bolster Domestic Industry

New Tariffs Announced by Türkiye's Trade Ministry

Türkiye's Trade Ministry on Monday, September 22, 2025, unveiled a new set of sweeping tariffs on passenger car imports, a move designed to fortify the nation's domestic automotive industry. The new regulations, published in the Official Gazette, stipulate additional duties of up to 30% of the customs value or a minimum of $8,500 per vehicle, depending on the model and category. These tariffs are slated to take effect 60 days after their official publication.

Detailed Breakdown of Import Duties

The newly imposed tariffs apply to passenger vehicles imported from countries outside the European Union and those with which Türkiye does not have free trade agreements. The specific additional customs duties vary based on the vehicle's powertrain:

• For conventional and hybrid cars (excluding plug-in hybrids), the tariff will be 25% of the customs value or a minimum of $6,000 per vehicle, whichever is higher.
• Plug-in hybrid cars will face a 30% tariff or a minimum of $7,000 per vehicle.
• Fully electric cars will incur a 30% tariff or a minimum of $8,500 per vehicle.

The Ministry of Trade stated that these measures are intended to 'defend domestic and national production against the pressure of intense imports and unfair competition, while also protecting employment and reducing the current account deficit.'

Strategic Rationale and Global Context

The Turkish government's decision is rooted in a broader strategy to shield its automotive sector from global economic shifts and increasing protectionism worldwide. The ministry highlighted the automotive sector's 'strategic role' in Türkiye's economy, emphasizing its contributions through manufacturing, exports, and both direct and indirect employment. 'In light of global trade wars and increasing protectionism, it has become necessary to protect our sector from the growing pressure of imports,' the ministry noted.

Impact on Imports and Related Policy Shifts

The new tariffs are expected to significantly impact imports from major global brands not currently produced within Türkiye, including Japanese manufacturers like Toyota, Honda, and Nissan, South Korean brands such as Hyundai and Kia, and electric vehicle producers like Tesla and BYD. Concurrently, a presidential decree issued on the same day announced the termination of 60% additional tariffs on U.S. auto imports that had been in place since 2018. This move brings American car imports in line with other sources, subjecting them to the new general tariff structure. This decision comes ahead of a scheduled meeting between Turkish President Recep Tayyip Erdogan and U.S. President Donald Trump, signaling a potential warming of bilateral trade relations.