US President Donald Trump signed an executive order on Thursday increasing tariffs on imports from Turkey to 15 percent, up from a previous rate of 10 percent. The measure is part of a sweeping overhaul of US trade policy impacting dozens of countries, enacted just ahead of Trump’s self-imposed August 1 deadline for revising trade agreements.
Outlined in a White House statement, the new policy aims to address trade imbalances and promote reciprocity. Turkey’s revised tariff rate was described as moderate, especially when compared with higher duties exceeding 40 percent now imposed on countries such as China. Turkish officials said the relatively modest increase reflected Turkey’s “white list” status, citing balanced bilateral trade and mutual investments with the United States.
The new tariff will take effect on August 7 and is expected to raise costs for Turkish exporters entering the US market. Analysts say it could slow export growth or trigger short-term contractions in key sectors such as automotive, textiles and steel. Still, the comparatively lower rate may present an opportunity for Turkish companies to capture market share from competitors facing steeper US tariffs.
In 2024 trade between the US and Turkey totaled approximately $32.58 billion, with Turkish exports accounting for around $16 billion to $17 billion, roughly 6 percent of Turkey’s total exports. June 2025 figures showed relatively balanced trade, with Turkish exports to the US totaling $1.2 billion and imports reaching $1.5 billion.
According to the Turkish Statistical Institute (TurkStat), Turkey’s main exports to the US include vehicles, automotive parts, machinery, textiles and apparel, iron and steel products and mineral fuels such as petroleum. In 2024 automotive exports were valued at approximately $1.04 billion, textiles reached $2.68 billion, and steel products also made significant contributions.
However, excluding petroleum and energy products, officials acknowledged that Turkey’s export portfolio to the US remains relatively narrow, stressing the need for diversification.
The tariff increase is especially challenging for industries like automotive, textiles and steel, which already face thin profit margins. The automotive sector, now facing tariffs of up to 25 percent, is expected to see reduced demand and possible supply chain disruptions. Meanwhile, textile and steel exporters could struggle to compete against both lower-tariff competitors and US domestic producers.
Speaking at an event in İstanbul on Wednesday titled “Towards the $100 Billion Trade Volume Target: A New Era in Turkish-American Economic Relations,” Turkish Deputy Trade Minister Murat Tuzcu addressed both the risks and opportunities posed by the tariffs. “Turkey does not pose a risk for the US in trade, as we are on the ‘white list,’” Tuzcu said. “Our goal is to raise our share to 1.5 percent in US imports, valued at $3.5 trillion.”
Tuzcu stressed the importance of diversifying Turkey’s export basket, adding, “We have specifically identified a roadmap targeting products from countries expected to lose market share due to these tariffs.”
Nail Olpak, head of Turkey’s Foreign Economic Relations Board (DEİK), said the $100 billion bilateral trade goal is both symbolic and strategically important, especially in sectors such as defense, digital technologies and energy.
Murat Özyeğin, chair of the Turkey-US Business Council (TAİK), talked about the growing potential of bilateral trade, which is currently worth approximately $45 billion when services are included. He said the targeted $100 billion figure is realistic and pointed to new opportunities arising from geopolitical developments. “Balanced bilateral trade distinguishes Turkey positively,” Özyeğin added.
While the White House portrayed the tariff increases as essential for US economic security and competitiveness, observers have described the moderate hike on Turkish imports as a “double-edged sword.” Though it presents challenges, the policy may also offer space for strategic adjustment and long-term market gains for Turkish exporters.