U.S. Resets Trade Policy as Tariffs Rise for Turkish Imports

In a landmark decision reflective of a broader shift in global trade strategy, U.S. President Donald Trump signed an executive order raising tariffs on imports from Turkey to 15%, up from the previous 10%. The measure, announced just ahead of Trump’s self-imposed August 1 deadline to overhaul existing trade agreements, is part of a strategic rebalancing meant to strengthen U.S. competitiveness. Trump Tariffs

The new policy was confirmed in a White House statement outlining a series of changes aimed at correcting trade imbalances and enforcing reciprocal access in global markets. Compared to the more severe tariffs exceeding 40% applied to Chinese imports, Turkey’s new 15% rate is considered moderate, reflecting its “white list” status.

New Tariffs Take Effect August 7

The new 15% tariff rate will be effective starting August 7. Analysts predict an immediate impact on Turkish exports to the U.S., particularly in sectors already operating on narrow margins—such as automotive, textiles, and steel. Trump Tariffs

While the tariff hike presents new cost barriers, some experts note it may also open up opportunities. Turkish businesses may find themselves more competitive than exporters from nations facing much steeper duties.

Understanding the Numbers: A Look at U.S.–Turkey Trade

In 2024, total trade between the U.S. and Turkey reached approximately $32.58 billion, with Turkish exports contributing between $16–17 billion. This equates to roughly 6% of Turkey’s total exports.

By June 2025, trade remained relatively balanced, with Turkey exporting $1.2 billion worth of goods to the U.S., and importing $1.5 billion in return.

Top Turkish Exports to the U.S. (2024 Figures):

• Automotive: $1.04 billion Trump Tariffs
• Textiles and Apparel: $2.68 billion
• Steel and Iron Products: Significant contributor
• Machinery, Parts, and Mineral Fuels

According to the Turkish Statistical Institute (TurkStat), these exports play a vital role in Turkey’s economic relationship with the U.S. However, officials have pointed out the need for greater export diversification—especially in sectors outside petroleum and raw materials.

Impact on Key Turkish Industries

Although the 5% increase in tariffs might seem modest, certain industries will be disproportionately affected:

? Automotive Sector Trump Tariffs

Already contending with razor-thin margins and global supply chain volatility, Turkish car manufacturers and parts suppliers are bracing for additional costs. The effective tariff rate for auto-related goods may rise as high as 25% due to compounding measures. A decline in export volumes is likely.

? Textiles and Apparel

Turkey’s robust textile industry, a key exporter to the U.S., is expected to feel the squeeze. New duties could erode price competitiveness, particularly when compared with lower-tariff countries in South Asia. Trump Tariffs

?️ Steel and Iron

The metallurgy sector is vulnerable due to energy-intensive processes and existing anti-dumping constraints. Increased costs may lead to reduced order volumes or a shift toward other markets.

Government Response and Strategic Roadmaps

In response to the new trade policy, Turkish officials have presented both criticism and optimism. At an event in Istanbul titled “Towards the $100 Billion Trade Volume Target: A New Era in Turkish-American Economic Relations”, Deputy Trade Minister Murat Tuzcu addressed the changing landscape. Trump Tariffs

“Turkey does not pose a risk for the U.S. in trade, as we are on the ‘white list.’ Our goal is to raise our share to 1.5% in U.S. imports, valued at $3.5 trillion,” Tuzcu said.

He emphasized the importance of product diversification and hinted at a roadmap designed to capitalize on gaps left by countries facing steeper U.S. trade restrictions.

Business Community Reacts

Nail Olpak, president of Turkey’s Foreign Economic Relations Board (DEİK), described the $100 billion target as both “symbolic and strategic.” He highlighted defense, energy, and digital technologies as high-potential growth areas. Trump Tariffs

Murat Özyeğin, chairman of the Turkey-U.S. Business Council (TAİK), noted that when services are included, total bilateral trade already sits around $45 billion. He expressed confidence that recent geopolitical shifts would create new economic openings.

“Balanced bilateral trade distinguishes Turkey positively,” said Özyeğin.

How the White House Justifies the Shift

In its official statement, the White House defended the tariff hikes as necessary to ensure long-term economic security and fair competition for American producers. It cited decades of uneven trade relationships and the urgency to recalibrate those imbalances.

While some sectors view the new Turkish tariff rate as punitive, others see it as relatively lenient compared to the 30–50% duties imposed on countries with adversarial trade standings. Trump Tariffs

Double-Edged Sword: Risks and Opportunities

Observers across both nations agree: the new tariff is a double-edged sword. It may introduce short-term pain through higher costs and slower export growth. But it also encourages strategic adaptation, including supply chain realignments and value-added product development.

Some experts believe Turkish firms could capitalize on the openings created by harsher U.S. restrictions on competitors like China and India. Trump Tariffs

Conclusion: Realigning U.S.–Turkey Trade Relations

The increase in tariffs on Turkish imports signals a redefined chapter in U.S.–Turkey economic relations. While posing clear challenges for exporters in the short term, it also introduces opportunities for strategic realignment, market repositioning, and innovation.

Turkish industries now face a critical choice: adapt and diversify—or risk stagnation in one of their most vital export markets. The coming months will reveal whether this new trade landscape fosters resilience or regression.

Key Decision: Classification Annulled

The Court of Justice of the European Union has officially confirmed the annulment of the carcinogenic classification of titanium dioxide (TiO₂) in its powdered form. This decision, made public today, upholds a 2022 ruling from the General Court, bringing nearly a decade of scientific, legal, and regulatory debate to a close.

This final judgment reinforces the stance that the European Commission had erred in its original classification process, particularly in how it assessed the scientific evidence.

Timeline: From Initial Concerns to Final Verdict Trump Tariffs

• 2015: The French health agency ANSES proposed classifying titanium dioxide as a suspected carcinogen by inhalation.
• 2017: The European Chemicals Agency’s Committee for Risk Assessment (RAC) supported the classification.
• 2019: The European Commission adopted Regulation (EU) 2020/217, applying the classification to powdered TiO₂ with ≥1% particles ≤10μm in size.
• 2022: The General Court annulled the classification, citing misuse of scientific evidence.
• 2025: The EU Court of Justice rejected appeals by France and the Commission, confirming the annulment.

Scientific Grounds for Overturning the Classification Trump Tariffs

The case revolved around a specific toxicological study that had been used to justify labeling titanium dioxide as a potential carcinogen. The General Court found that the Commission had committed a “manifest error of assessment” in relying on this research without fully evaluating its scientific reliability and limitations.

The EU Court of Justice acknowledged that the General Court may have gone beyond its traditional judicial boundaries in assessing the science. Nevertheless, the ruling was upheld because the RAC had failed to consider all relevant scientific factors before endorsing the classification.

Implications for Industry and Regulation

The ruling is a major relief for TiO₂ manufacturers, importers, and downstream users. Many feared that the classification would trigger widespread product relabeling, market access restrictions, and loss of consumer trust across Europe. Trump Tariffs

The decision sets a precedent in European chemical regulation by reinforcing the importance of scientific rigor and procedural accuracy in hazard assessments. It highlights the responsibility of regulatory bodies to critically evaluate evidence before enforcing wide-reaching measures.

Who Challenged the Classification?

After the classification was published in 2019, it faced significant backlash. A coalition of industry stakeholders—led by companies such as CWS Powder Coatings—filed an action to annul the ruling.

The General Court sided with the plaintiffs in November 2022, concluding that the underlying evidence did not support the classification. The European Commission and the French government then appealed to the Court of Justice, which has now fully dismissed those appeals. Trump Tariffs

What Is Titanium Dioxide and Why Is It Important?

Titanium dioxide is an inorganic compound primarily used for its white pigment properties. It provides brightness and opacity in a wide range of products:

• Paints and coatings
• Plastic products
• Food coloring (in some markets)
• Cosmetics and skincare
• Pharmaceutical coatings

The classification as a carcinogen would have affected labeling, marketing, and permissible usage across the European market, influencing supply chains and regulatory compliance.

Legal References and Case Info

The final ruling refers to Joined Cases C-71/23 P and C-82/23 P, in which the European Court of Justice evaluated appeals made by the European Commission and the French Republic against the previous annulment. Trump Tariffs

In its final decision, the court concluded that the RAC’s opinion did not provide a sufficient scientific basis to classify titanium dioxide as carcinogenic under current EU regulation standards.

See also: EU Court Judgment – Official Document

Final Thoughts: A Milestone for Scientific Regulation

The ruling on titanium dioxide is more than a regulatory adjustment—it marks a major shift in how scientific data should be interpreted and applied in policymaking. It sends a strong message to both EU regulators and industry stakeholders: due diligence and transparency in scientific assessment are not optional. Trump Tariffs

As TiO₂ retains its place in the global market without the carcinogen label, the judgment may pave the way for re-examinations of other controversial chemical classifications in the years to come.