United States of America 2025 Import Tariff Regulations and Potential Effects on Turkey

United States of America 2025 Import Tariff Regulations and Potential Effects on Turkey

The Presidential Decree No. 14257 of the United States of America (“U.S.”) through (“Decree”) introduced new import tariffs applied in the context of international trade, specifically for imports. In this article, we will examine these newly introduced customs tariffs from a legal perspective and evaluate their implications for Turkey’s trade relations.

What is a Reciprocal Tariff?

A reciprocal tariff is defined as a tax imposed on imported goods in a manner equal to the tariffs that other countries impose on that nation's exports. This approach highlights the principle of reciprocity in international trade.
The absence of specific and balanced tariffs can lead to trade imbalances between countries. For instance, a country that imposes low tariffs but is subjected to high tariffs by others may struggle to competitively sell its products abroad. Meanwhile, its domestic market becomes more accessible to cheaper foreign goods, resulting in a trade deficit.

Therefore, implementing reciprocal tariffs can help maintain trade balance, support domestic production, provide grounds for negotiations, and develop strategic trade relations. However, these tariffs may also be used as leverage between countries, increasing the risk of international trade tensions.

Historical Development of Reciprocal Tariffs

One of the modern legal foundations of reciprocal tariff practices is the Reciprocal Trade Agreements Act enacted by the United States in 1934. This law was implemented during the Great Depression, a period marked by declining trade and peak protectionism, aiming to revive foreign trade. It was the first time the U.S. Congress authorized the President to reduce tariffs and enter into reciprocal trade agreements with other nations.

This shift marked the beginning of a transition in U.S. trade policy from protectionism toward a more open and cooperative model. It played a major role in reconstructing international trade after World War II and contributed to the establishment of global platforms like the General Agreement on Tariffs and Trade (GATT) . Today, the principle of reciprocity remains a core element within the multilateral trade arrangements of the World Trade Organization (WTO).

Recent Developments

With Presidential Decree No. 14257, published on April 2, 2025, the United States introduced a new regulation. Through this regulation, the U.S. revised the customs duties it applies to various countries and established different tariff rates for each country.

Section 2 of the Order introduced a base ad valorem tariff of 10%:

Sec. 2. Reciprocal Tariff Policy: It is the policy of the United States to rebalance global trade flows by imposing an additional ad valorem duty on all imports from all trading partners except as otherwise provided herein. The additional ad valorem duty on all imports from all trading partners shall start at 10 percent and shortly thereafter, the additional ad valorem duty shall increase for trading partners enumerated in Annex I to this order at the rates set forth in Annex I to this order. These additional ad valorem duties shall apply until such time as I determine that the underlying conditions described above are satisfied, resolved, or mitigated.

The implementation of this tariff has been set for April 5, 2025, as stated in Article 3 of the Decree.

Sec. 3. Implementation: (a) Except as otherwise provided in this order, all articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10 percent. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 5, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty.

A 10% taxation rate has been set as the baseline, with higher tax rates established for certain countries. Turkey is among the countries that will be taxed at the standard 10% rate.

China is the primary country subject to additional taxation. According to the Decree, the customs duty rate to be applied to China was initially set at 34%. However, under the new regulation introduced on April 9, 2025, the additional duty rate for China was increased to 125%. Together with the existing 20% duty, a total tax rate of 145% will be applied to Chinese imports, and this decision was enacted on the same day . For other countries subject to additional duties, the effective date of the new tariff rates, originally set for April 9, 2025, has been postponed by 90 days. The countries, including China, subject to additional duties are listed in Annex 1 of the Decree.

Country Reciprocal Tariff (%) Country Reciprocal Tariff (%)
Algeria 30% Madagascar 47%
Angola 32% Malaysia 24%
Bangladesh 37% Mauritius 40%
Bosnia and Herzegovina 35% Moldova 31%
Botswana 37% Mozambique 16%
Brunei 24% Myanmar (Burma) 44%
Cambodia 49% Namibia 21%
Cameroon 11% Nauru 30%
Chad 13% Nicaragua 18%
China 145% Nigeria 14%
Côte d'Ivoire 21% North Macedonia 33%
Democratic Republic of the Congo 11% Norway 15%
Equatorial Guinea 13% Pakistan 29%
European Union 20% Philippines 17%
Falkland Islands 41% Serbia 37%
Fiji 32% South Africa 30%
Guyana 38% South Korea 25%
India 26% Sri Lanka 44%
Indonesia 32% Switzerland 31%
Iraq 39% Syria 41%
Israel 17% Taiwan 32%
Japan 24% Thailand 36%
Jordan 20% Tunisia 28%
Kazakhstan 27% Vanuatu 22%
Laos 48% Venezuela 15%
Lesotho 50% Vietnam 46%
Libya 31% Zambia 17%
Liechtenstein 37% Zimbabwe 18%
Malawi 17%    



This new framework introduced by the U.S. appears to be in violation of Article I of the GATT, one of the foundational agreements of the WTO, which establishes the Most-Favoured-Nation principle. Consequently, the U.S. may face potential sanctions or dispute resolution proceedings before the WTO.

Potential Effects of the New Regulation on Turkey

According to the new regulation, Turkey has not been subjected to additional tariffs and is included among the countries facing the standard 10% rate.

For Turkey, which was previously subject to 0% or very low customs duties in many product categories, this new adjustment represents a tariff increase. This increase may particularly raise export costs in the automotive, textile, and electronics sectors. However, key strategies for Turkish exporters to counter this new regulation include exploring alternative markets, optimizing cost management, and adjusting pricing strategies in the U.S. market. It is also important to note that Turkey's placement in the lowest tax bracket compared to other countries remains a relative advantage .

Especially for the textile sector, this development could create an opportunity in favor of Turkey. The tax rates that the U.S. applies to Turkey specifically in the textile sector vary between 10% and 20% depending on the product type , and the fact that additional higher taxes will be applied to countries such as China, India, South Korea, Pakistan, and Taiwan, which are Turkey’s direct competitors in the textile field, may enable Turkey to gain a more competitive position in the U.S. market.

With the regulations, it is observed that apart from the textile sector Turkey enjoys more favourable customs tariffs compared to many Asian countries exporting to the European Union and the United States. Considering those countries such as India, Bangladesh, China, and Indonesia are subject to high customs duties in their trade with the United States, it is evident that Turkey is in a significantly more advantageous position. In this context, Turkey is expected to become a trade hub for imports to the United States in the upcoming period.

For any questions regarding this article, you may contact the contributors or reach out to info@npartners.com.tr


SOURCES:

 1.  United States Executive Office of the President. (2025, April 2). Presidential Decree No. 14257
https://www.whitehouse.gov/presidential-actions/2025/04/regulating-imports-with-a-reciprocal-tariff-to-rectify-trade-practices-that-contribute-to-large-and-persistent-annual-united-states-goods-trade-deficits/
2. United States, Executive Office of the President (2025, April 9). Presidential Decree on Modifying Reciprocal Tariff Rates, https://www.whitehouse.gov/presidential-actions/2025/04/modifying-reciprocal-tariff-rates-to-reflect-trading-partner-retaliation-and-alignment/
3. Drumm, E., Naas, P., & Wright, G. (2025). The new US tariffs. Center for Strategic and International Studies (CSIS)
https://www.gmfus.org/news/new-us-tariffs
4. Eğilmez, M. (2025, April). Trump'ın Gümrük Vergileri ve Türkiye
https://www.mahfiegilmez.com/2025/04/trumpn-gumruk-vergileri-ve-turkiye.html5. General Agreement on Tariffs and Trade (GATT),1947
https://www.wto.org/english/docs_e/legal_e/gatt47_e.html

Nazlı Özkul Beliz Deveci Elif Tanyeri
PartnerLegal InternAssociate
T: +90 533 413 75 03 T: +90 544 103 46 06 T: +90 533 600 11 05
nazli@npartners.com.tr beliz@npartners.com.tr elif@npartners.com.tr