President Trump announced in an Aug. 10 tweet that he has authorized the doubling of Section 232 tariffs on steel and aluminum from Turkey, citing the rapid depreciation of the Turkish lira and poor relations between the two countries. The tariffs would jump from 25 percent to 50 percent in the case of steel, as well as from 10 percent to 20 percent in the case of aluminum, although it is uncertain when the higher tariffs would actually enter into force.
Earlier this month, the Office of the U.S. Trade Representative launched a review of the eligibility of Turkey to participate in the Generalized System of Preferences based on concerns related to its compliance with the GSP market access criterion. The review is in response to Turkey’s imposition of additional tariffs on $1.78 billion worth of U.S. imports, which came in retaliation for the United States’ additional tariffs on imports of steel and aluminum products.
Turkey is the ninth largest steel producer in the world as well as the eighth largest U.S. supplier of iron and steel (HS Chapter 72) last year. The Turkish lira has lost a great deal of its value against the dollar and other major currencies in recent months, falling by 28 percent versus the greenback since the end of March.