Turkish steel exports to US and EU fell in 2019 due to tariff increases

Steel exports from Turkey to the US and European Union (EU) markets between January and November 2019 fell by almost 2.7 million tonnes from levels recorded a year earlier due to additional protective tariffs imposed by Washington and the bloc.

Total exports of the Turkish steel industry to the United States during this period fell to 309,000 tons, which was recorded at 1.1 million tons a year earlier, according to the Turkish Steel Association (TÇÜD). The data showed that exports to the EU also fell to 7.1 million tons from the previous 9.6 million tons.

TÇÜD Secretary General Veysel Yayan said the protectionist measures imposed by the US and the EU gained momentum after China “occupied” the global steel markets in 2018.

According to Yayan, the total export of China's steel industry to Turkey increased to 3 million tons from 400,000 tons in two years, noting that the increase has caused the export price from the Asian country to nearly fall to the price applied for scrap metal, which used as raw material in steel production.

This dealt a blow to Turkey's steel sector, Yayan said, adding that the additional 25% tariffs imposed by the US for all countries did not benefit Turkey; this was later increased by 50% for Turkey amid a diplomatic scandal between Ankara and Washington.

On August 10, 2018, the US President announced that he had authorized a doubling of tariffs on steel and aluminum imported from Turkey. The US imposed 20% on aluminum and 50% on steel imports, fueled by a long-debated issue between the two countries following the arrest in Turkey of American pastor Andrew Brunson, who was released in October. Washington imposed higher tariffs to put economic pressure on Turkey to free Brunson, who was detained on terrorism charges.

Turkey, however, referred the matter to the World Trade Organization (WTO) and won its first call for additional US tariffs in December 2018. In response, Turkey also raised tariffs on some U.S. products by more than 100% on August 15, 2018. In March 2018, the United States imposed tariffs of 25% on steel imports and 10% on aluminum imports, which angered major trading partners including Turkey, the EU and South Korea.

Later, in May 2019, Turkey decided to lower additional tariffs on certain imports to the United States in response to a similar move by the United States, which halved tariffs on steel imports from Turkey to 25% from 50%.

Yayan also stressed that in 2019, 108 inspections of protectionist tariffs, damping and countervailing taxes on transactions were initiated worldwide in 2019, a significant part of which is of interest to Turkey.

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