Turkey introduces a 40% tax on Chinese-made cars

An important change has occurred in the customs duties applied to vehicles imported from China. The 40% customs duty previously applied only to electric vehicles now applies to all types of vehicles from China. The decision is published in the "Official Gazette" of Turkey and will enter into force on 7 July 2024. Thus, the total tax rate applied to cars of Chinese origin increased to 50 per cent. 

The rationale for the tax increase is to stimulate domestic production and reduce the foreign trade deficit. However, representatives of the automobile sector are concerned that this decision may lead to another increase in car prices, which will affect consumers, and lead to a decline in the share of Chinese brands in the Turkish market.

By the way, last month the US also raised tariffs on Chinese electric cars and solar panels, which led to comments that this decision could be part of a global trade war.