euronews.com
US Tariffs Present Complex Scenario for Turkey
President Trump's 10% tariff on Turkish goods, while impacting exports to the US ($16.7 billion in 2024), is partially offset by Turkey's free trade agreements with 54 countries and its customs union with the EU; however, indirect effects via reduced EU competitiveness are a concern, alongside opportunities to attract investment.
- How might Turkey's existing trade relationships, particularly with the EU, influence the effects of the US tariffs?
- Turkey's existing free trade agreements with 54 countries and its customs union with the EU offer a buffer against the full impact of the US tariffs. However, the indirect effect of reduced EU competitiveness, impacting Turkey's supply of intermediate goods, is a key negative. This effect is exacerbated by the fact that Turkey's exports to the EU far outweigh those to the US ($108.7 billion vs. $16.7 billion in 2024).
- What is the immediate impact of the 10% US tariff on Turkey, considering its diverse export markets and trade agreements?
- President Trump's announcement of a 10% tariff on Turkish goods, compared to higher tariffs on other countries, presents a complex scenario for Turkey. While Turkish exports to the US totaled \$16.7 billion in 2024, a significant portion (68%) of its exports go to countries outside the US and EU, mitigating the direct impact. The indirect impact, however, through intermediate goods supplied to the EU (facing a 20% tariff), is a concern.
- What are the potential long-term implications of the US tariffs on Turkey's economy, including opportunities for attracting foreign investment and reshaping its export strategies?
- The US tariffs could inadvertently benefit Turkey by attracting foreign investment. Companies facing higher tariffs in other countries, such as China, may relocate to Turkey to leverage its lower tariff rate for US exports. Turkey's success in capitalizing on this opportunity depends on creating a favorable investment climate and strategically developing its export sectors to reach new markets. The relatively small exposure of Turkey's GDP (less than 2%) to US demand suggests limited overall economic vulnerability.
Cognitive Concepts
Framing Bias
The headline and introductory paragraphs emphasize Turkey's potential to leverage the new tariffs to its advantage. The positive aspects of the situation are presented prominently, while potential downsides are mentioned later in the article. This framing could lead readers to overestimate the benefits and underestimate the risks.
Language Bias
The language used is mostly neutral, although phrases like "leverage an advantage" and "unique position" suggest a slightly positive bias. The repeated emphasis on potential benefits also contributes to a subtly optimistic tone.
Bias by Omission
The article focuses heavily on the potential benefits for Turkey from the new tariff regime, but gives less attention to potential downsides beyond the impact on intermediate goods supplied to the EU. While the negative impact on intermediate goods is mentioned, a more comprehensive analysis of other potential negative consequences for the Turkish economy would provide a more balanced perspective. The article also omits discussion of the political ramifications of Turkey's potential economic advantage in this situation.
False Dichotomy
The article presents a somewhat simplistic eitheor scenario: Turkey either benefits from the tariffs or suffers limited negative consequences through intermediate goods. It overlooks the complexities of global trade and the possibility of a more nuanced outcome, where certain sectors might benefit while others suffer.
Gender Bias
The article does not exhibit significant gender bias. While mostly male experts are quoted, this seems more reflective of the field of economics than intentional bias.
Sustainable Development Goals
The article highlights potential opportunities for Turkey to attract foreign investment and boost its manufacturing sector due to the new global trade environment created by US tariffs. This could lead to job creation and economic growth in Turkey. The relocation of manufacturing production from countries with higher tariffs to Turkey could stimulate Turkey's economy and create new job opportunities. While there are potential negative impacts, the overall potential for economic growth outweighs them, making this a positive impact on SDG 8.