Government/Policy
Turkey Sanctions to Include 50 Percent Tariffs on Steel Imports
Written by Sandy Williams
October 15, 2019
Tariffs on steel imports from Turkey will be doubled to 50 percent, declared President Trump, in punishment for Turkey’s military offensive on Kurds in northern Syria. The current tariffs imposed under Section 232 will be increased by executive action, said the White House.
Trump’s decision last week to withdraw troops from Syria left the U.S.-allied Kurdish militia open to attack by Turkey, a move that provoked strong bi-partisan criticism.
“I am fully prepared to swiftly destroy Turkey’s economy if Turkish leaders continue down this dangerous and destructive path,” said Trump on Monday. “Unfortunately, Turkey does not appear to be mitigating the humanitarian effects of its invasion.”
Section 232 tariffs on steel imports from Turkey were increased from 25 percent to 50 percent in August 2018 and rolled back to 25 percent in May 2019. In addition, the U.S. currently has 15 AD/CVD remedies in place on the country’s steel products.
According to data from the U.S. International Trade Administration, steel imports from Turkey have plummeted 76 percent in 2019. The impact of raising the tariffs back to 50 percent will likely be negligible on import volumes, but may impact the MSCI Turkey IMI 25/50 Index, which holds about a third of its equities in the industrial and materials sector.
The Trump administration also said it will halt a $100 billion trade deal with Turkey and threatened to block Turkish banks from accessing U.S. markets. Waivers, however, will be granted to ensure that the country’s energy needs are not disrupted.
Trump challenged other countries to step in to assist Syria, stating in a Tweet on Monday: “Anyone who wants to assist Syria in protecting the Kurds is good with me, whether it is Russia, China, or Napoleon Bonaparte. I hope they all do great, we are 7,000 miles away!”
U.S. lawmakers are working to prepare legislation to require the administration to impose tougher sanctions, as well as a strong bipartisan, bicameral sanctions package, should the president not follow through with his threats.
Sandy Williams
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