President Donald Trump of the US is set to impose a 25% tax on steel and aluminum imports. These additional taxes will take effect as of March 3. The impact of this decision on Turkey is yet to be determined. Industry officials suggest that the effects on Turkey will become clearer after the implementation of the tax.

President Donald Trump continues to increase import tariffs. This time, his target is the entire world. Regardless of the country of origin, steel and aluminum imported to the United States will face a 25% tax. President Trump signed the executive order in the Oval Office, with the tax set to be enforced on March 3. Most recently, a 25% tax will be imposed on steel and aluminum imported by the US from all countries. Trump is not granting any exemptions to any country in this regard.

TAXES NOT LIFTED FOR TURKEY Steel Producers Association Secretary General Veysel Yayan stated, “Steel and aluminum are heavily used in manufacturing and automotive industries. This is a measure aimed at protecting their own industry. At the same time, they want to use this as an instrument to meet demands in other sectors.” Trump had also imposed a tax on steel and aluminum during his first term as president. This tax affected many countries, including the European Union, China, and Turkey. Joe Biden, upon taking office, lifted the tax for most countries, except for Turkey.

APPLICATION METHOD OF THE TAX WILL BE CRUCIAL

It remains uncertain how the steel tax will affect Turkey. Yayan stated, “If the 25% tax is applied equally to us, even if the tax isn’t lifted, we may feel good about it. But if they apply it as part of the customs duty, as in using it as a protective measure plus a customs duty, then they would levy double the 25% on us. We are waiting to see what will happen.” The US already imposes an additional 2% tax on Turkish steel.