A diverse trade network makes Türkiye relatively less vulnerable to global disruptions, according to Treasury and Finance Minister Mehmet Şimşek's statement on Wednesday, dismissing concerns about the impact of U.S. tariffs.
Şimşek cited that approximately 62% of Türkiye's trade is with parties it has free trade agreements with, and 80% is with regions including the European Union, Central Asia, the Middle East and North Africa.
"So, I think we are somewhat less fragile," he told a panel on the sidelines of the World Government Summit 2025 in Dubai, United Arab Emirates (UAE).
Investors and markets remain uncertain and continue to watch U.S. President Donald Trump's tariff escalation, which is ratcheting up fears of a widening global trade war.
Trump's latest announcement included 25% tariffs on all foreign steel and aluminum coming into the U.S.
Last week, Trump imposed an additional 10% tariff on goods from China, effective Feb. 4, with Chinese countermeasures taking effect this week.
He delayed a 25% tariff on goods from Mexico and Canada for a month until March 4 to allow negotiations over steps to secure U.S. borders and halt the flow of fentanyl.
On Wednesday, Trump's trade advisers were finalizing plans for the reciprocal tariffs the president has vowed to impose on every country that charges duties on U.S. imports.
Asked about the impact of U.S. tariffs, Şimşek dismissed significant concerns, explaining that Türkiye already faces high levies from the United States and has a longstanding trade deficit with the country.
"We are already subject to high tariffs by the U.S. Additionally, when we look at the last 20 years, we have an overall trade deficit with the U.S. Therefore, unless it is political, we do not actually meet the necessary criteria to be subject to high tariffs by the U.S," he said.
Şimşek also underscored Türkiye's membership process continues despite the lack of political will in the EU, and it remains fully integrated into many other frameworks, including the customs union, the Council of Europe and NATO.
He advocated for regional integration as a key strategy to combat vulnerabilities arising from a fragmented world.
"Therefore, we want to establish a free trade agreement with the Gulf Cooperation Council (GCC) and we want stability in Syria. We have good relations with Russia, but Europe is our main partner. Despite some political suspicions, our relations with Europe are strong," said Şimşek.
"On the other hand, BRICS is a dialogue platform, as is the G-20. These are not customs unions or free trade zones. Therefore, we should not think about them too much, but we must understand that the world is changing. I believe regional integration is key to combatting the vulnerabilities caused by fragmentation."
Highlighting the complex global landscape, Şimşek said that reasonable policies and structural transformation are the best way to build resilience.
He reassured that Türkiye's three-year medium-term economic program is on track, focusing on fiscal discipline, disinflation and comprehensive structural reforms.
"We are ensuring fiscal discipline, we are in a disinflation process. Inflation is falling. We are talking about a combination of tight monetary policy, fiscal policy and a very broad structural reform agenda," Şimşek stated.
Asked about the performance of the Turkish lira against the U.S. dollar, he noted that despite nominal weakening due to high inflation, the real effective exchange rate shows the currency as a strong performer. He attributed this to successful disinflation efforts.
"When we look at it in terms of the real effective exchange rate, the lira has actually been one of the better-performing currencies because disinflation programs provide some degree of appreciation, and this has also occurred with the lira," Şimşek said.
The minister also referred to Türkiye's current account balance, noting that the current account deficit has decreased to 0.6% of national income.
Şimşek stated that reserve accumulation has increased by approximately $126 billion in the past 1.5 years, indicating that many buffers have been created in the economy to withstand shocks.
