Turkey Implements Higher Import Tariffs to Protect Steel Industry
In a significant move to protect its domestic steel industry, Turkey has raised import tariffs on certain steel products. Effective January 1, 2025, these new tariffs are aimed at reducing the competitive pressure from foreign steel imports, particularly from markets where prices are perceived as being unfairly low due to subsidies or dumping practices.
The new tariff rates will apply to three major categories of steel products: hot-rolled steel, cold-rolled steel, and galvanized steel. The decision is part of Turkey's ongoing efforts to safeguard its local steel production and to ensure that the Turkish steel industry can continue to compete effectively on a global scale.
Increased Tariffs on Hot-Rolled and Cold-Rolled Steel Products
Under the new tariff structure, the import duty on hot-rolled steel products has been increased to 15%, up from the previous 11%. Hot-rolled steel is commonly used in the production of a wide range of products, including structural steel for construction, automotive parts, and machinery. The increase in the tariff on this category is seen as a measure to reduce the influx of cheaper foreign products, which could negatively impact local manufacturers.
Similarly, the tariff on cold-rolled steel has also been raised. The import duty on cold-rolled steel products is now set at 17%, a notable increase from the 15% rate applied in 2024. Cold-rolled steel is used in the production of various high-precision items, including household appliances, automotive body panels, and electrical components. By raising tariffs on these products, Turkey aims to bolster the competitiveness of its local steel industry in sectors that require high-quality steel.
Introduction of 20% Tariff on Galvanized Steel Products
In a more aggressive step, the Turkish government has also introduced a 20% import tariff on galvanized steel products, effective from January 2025. Galvanized steel is coated with a layer of zinc to prevent corrosion, making it highly desirable in industries like construction, automotive manufacturing, and home appliances. This category includes alloyed sheets with a width of 600mm and pre-painted galvanized steel (PPGI), both of which are critical materials used in the production of long-lasting and durable products.
The 20% tariff on galvanized steel is part of Turkey's broader strategy to curb the import of low-priced steel products from abroad, especially in an era where international steel markets have seen increasing volatility. The high tariff will help local manufacturers by reducing the competition posed by foreign suppliers and allow them to capture a larger share of the domestic market.
