Automotive companies from around the world, including Türkiye, are bracing for new setbacks and uncertainty as the United States is due to impose stiff hikes in duties on imported vehicles.
The 25% tariffs that the administration of President Donald Trump will impose as of Thursday will apply to cars and parts not manufactured in the United States.
Those and "reciprocal tariffs," which Trump is due to announce on Wednesday and could target all countries that trade with the U.S., are a major source of global uncertainty, with fears that countermeasures from other countries could deepen trade tensions.
Trump has already imposed tariffs on aluminum and steel, along with increased tariffs on all goods from China.
The additional duties mean extra challenges for Türkiye as the United States has been a key destination for its automotive sector, according to data from the Turkish Exporters Assembly (TIM).
The U.S. ranked ninth among Türkiye's top 10 automotive export markets in 2024, a year in which the sector reached a record $37.2 billion in exports.
In the first two months of 2025, the U.S. dropped to rank 10th.
Although figures have fluctuated, Türkiye's auto exports to the U.S. have averaged $1.1 billion annually over the past six years.
In 2024, sales totaled $1.2 billion. That figure was $1 billion in 2023, $1.4 billion in 2022, $1.2 billion in 2021 and $951 million in 2020.
In January and February this year, shipments to the U.S. reached $198 million, up around 4% from the same period in 2023.
The sector’s total exports for the period stood at $6 billion, with the U.S. accounting for a 3.3% share.
Türkiye's Automotive Industry Exporters Association (OIB) Chair Baran Çelik said the U.S. is the world's second-largest motor vehicle manufacturer, with 11 million units, and one of the top production hubs.
Reiterating that the U.S. domestic market is also substantial, at 14 million units annually, Çelik said: "This also points to a vibrant aftermarket in the country. The U.S. is the world's largest automotive importer."
He noted that the U.S. imported $391 billion in automotive products in 2024.
"Just the supply industry imports in chapter 8708 is $90 billion. Our automotive exports to the U.S. have exceeded $1 billion for the last four years and the U.S. is among the top 10 countries for automotive industry's exports," he said.
"Our supply industry exports to the U.S. exceeded $1 billion in 2024. Therefore, our exports are mostly parts and components."
Although not all the details are clear yet, Çelik said the U.S. is expected to impose a 25% tariff on both vehicles and parts.
"Therefore, our main industry companies will be negatively affected in the first place. Although our exports are mainly in the supply industry, we export significant amounts of passenger cars and light commercial vehicles to the U.S. from time to time," he noted.
"Therefore, additional customs duties will in any case create a cost-increasing negative situation. For now, there is no clear date for the customs duties to be imposed on imports of components and parts."
Çelik said the Trump administration has pursued a strict trade policy not only with China but also with allies such as Mexico and Canada.
He added that Japanese and South Korean manufacturers would also be impacted by the U.S. administration’s protectionist policies.
"As a result, trade wars and protectionist policies pose a great risk to global trade in the coming period,” he said.
Çelik said the process brings both risks and opportunities for Türkiye, which remains a key production and export base for the automotive sector.
He said Türkiye is likely to be affected by global trade disruptions but noted: "However, our country's strategic position and flexible production capabilities offer the potential to turn these challenges into advantages."
"Our country has a balanced approach to foreign policy and economic relations. Maintaining strong trade relations with Europe as well as with Asia and the Americas in the coming period will help Turkey maintain its strategic importance," Çelik said.
