Turkey's new import duties risk higher costs for consumers, experts warn

Turkey's recent decision to impose additional customs duties, reportedly up to 30%, on intermediate goods is drawing criticism, with concerns that the financial burden will ultimately fall on consumers. This move comes despite Turkey's significant reliance on imported intermediate goods for its manufacturing sector.

Industry experts and commentators are highlighting a critical dependency, with production reportedly requiring 73% of intermediate goods from imports. They argue that imposing additional taxes on these essential imports, without simultaneously fostering conditions for domestic substitution, is a flawed protectionist strategy.

The core argument is that such measures, in the absence of viable local alternatives, will inevitably translate into higher prices for finished goods. This could stifle domestic production rather than bolster it, leading to inflation and reduced competitiveness in the market. The policy is being described as "hollow protectionism" for failing to address the underlying structural issues of import dependency.

Commentators emphasize that for these additional duties to be effective and not merely inflationary, Turkey must first establish robust domestic production capabilities for these intermediate goods. Without such foundational changes, the policy risks exacerbating economic pressures on businesses and consumers alike, potentially leading to unintended negative consequences for the Turkish economy.