Published Date: 09.04.2025 02:34 / Politics

Turkey May Gain Amid Trump’s Tariff Fallout

Turkey May Gain Amid Trump’s Tariff Fallout

Turkey's Minister of Treasury and Finance, Mehmet Simsek, stated on Tuesday that the market uncertainty triggered by United States President Donald Trump's global tariffs could ultimately benefit Turkey by positioning it as a more stable option among emerging economies.

Speaking in an interview with the Financial Times, Simsek remarked, “All of this is relatively constructive. When the dust settles, we hope and believe Turkey could positively decouple in investors' eyes from more troubled emerging economies in Asia and elsewhere.”

Simsek emphasized that Turkey’s economy is relatively shielded from the full impact of the US-imposed tariffs. He noted that 80% of Turkey's trade is with countries it holds free trade agreements with, which reduces the nation's direct exposure to Washington's aggressive trade policies.

While acknowledging a recent “large but brief impact from domestic political-driven turbulence,” referencing the arrest of Istanbul Mayor Ekrem Imamoglu, Simsek said that the current market instability is being driven more by international tariffs than by internal political developments.

“Turkey’s vulnerability is not so bad,” Simsek said, even while recognizing that the country might have to “live with softer growth” in the short term. He maintained that the overall economic fundamentals remain sound and that investor perception could increasingly favor Turkey over other emerging markets facing more pronounced risk.

The statement comes at a time when global investors are assessing the ripple effects of President Trump’s tariff-driven economic agenda. While many nations brace for volatility, Turkey is positioning itself as a relatively resilient economy with diversified trade partnerships and a pragmatic fiscal outlook.

Simsek’s comments underline a strategic optimism, suggesting that Turkey may emerge from the current economic turbulence in a comparatively advantageous position—particularly if it manages to maintain political stability and capitalize on its unique trade arrangements.