Turkey expects tariff relief from new US administration: Trade minister

Ankara, Nov 8 Turkey expects the new US administration to lower tariffs on its steel and textile exports following the re-election of Donald Trump as the US President, Turkish Trade Minister Omer Bolat said.

Bolat made the remarks on Thursday when speaking to local broadcaster AHaber.

"We expect improvements in bilateral relations, including the removal of certain embargoes on our defence industry's needs," he said.

The Turkish Minister added that Turkish companies and banks face significant pressures from sanctions on Russia, expressing hope that "these pressures would be alleviated and eventually removed".

Bolat also expected a more balanced and fair approach towards the region from the new US administration, Xinhua news agency reported.

However, in 2018, then-President Trump authorised higher tariffs on imports from Turkey, imposing a 20-per cent duty on aluminum and a 50-per cent one on steel, as tensions mounted between the two sides over Ankara's detention of an American pastor and other diplomatic issues.

Trump has promised to levy a 10 per cent tariff on all imported goods, to restrict migration, and to quickly end wars taking place in Turkey's north and south, in Ukraine and the Palestinian territory of Gaza respectively.

Trump's sweeping US presidential victory on Wednesday helped spark a rally of as much as 0.4 per cent in Turkey's lira, to 34.2 to the dollar, its strongest level since mid-October.

Bolat said he expected the Trump administration, to begin in January, would benefit Turkey's defence industry needs, despite past US sanctions that were levelled under Trump's first term over Ankara's purchase of Russian S-400 missile defences.

He also said he expected fallout on banks to ease from Washington's current Russia-related embargoes over Moscow's war in Ukraine.

Trump's promised trade and immigration policies could also leave Turkey relatively unscathed among large emerging market (EM) economies such as Brazil, Mexico and China, bankers said.

"The Turkey trade is a relative outperformer within global EMs with the Trump victory," said Blaise Antin, head of EM sovereign research at asset manager TCW in Los Angeles.

Source: IANS