Turkey has taken a notable step in recalibrating its trade policy by removing additional tariffs on a series of U.S. goods, a move that could ease tensions between the two nations and potentially reinvigorate bilateral trade. The announcement, published in Turkey’s Official Gazette, comes at a politically symbolic moment, as President Tayyip Erdoğan attends the United Nations General Assembly in New York and meets with President Donald Trump. For both nations, the decision holds economic and diplomatic weight, raising the question of whether Ankara is opening the door to improved U.S.-Turkey trade relations after years of friction.

From Retaliation to Recalibration
The tariffs in question were introduced in 2018, when Turkey responded to U.S. duties on steel and aluminum imports with its own set of penalties on American goods. Cars, agricultural products like fruits and rice, as well as tobacco, alcohol, solid fuels, and certain chemicals were all subject to higher costs when entering the Turkish market. At the time, the measures were framed as a show of sovereignty and retaliation against what Ankara saw as punitive U.S. trade policies.

By removing these tariffs now, Turkey appears to be recalibrating its trade posture. The reversal suggests a recognition that prolonged protectionism has weighed on domestic markets, raised consumer prices, and limited supply chain flexibility. More importantly, it signals a willingness to move beyond retaliatory trade practices that may have once served a political purpose but have since constrained bilateral commerce.

Diplomatic Timing and Strategic Motives
The timing of the decision raises important considerations. Erdoğan’s presence in Washington for the UN General Assembly and his scheduled meeting with President Trump strongly suggest the move is as much diplomatic as economic. By taking a conciliatory step ahead of high-level talks, Turkey may be seeking to strengthen its bargaining position, foster goodwill, and defuse a longstanding irritant in bilateral relations.

This gesture could also reflect Ankara’s broader strategy of balancing domestic economic needs with international diplomacy. With Turkey’s economy facing challenges from inflation and volatile capital flows, normalizing trade channels with major partners like the U.S. could be viewed as a necessary step toward greater stability.

Economic and Market Implications
The immediate impact of the tariff rollback will be felt in import-dependent sectors. Lower duties on cars, agricultural produce, and chemicals could reduce input costs, ease inflationary pressures, and improve product availability for Turkish consumers. U.S. exporters, meanwhile, regain a more level playing field in accessing the Turkish market, which could increase trade volumes in the short term.

However, there are risks. Domestic producers who once benefited from the protectionist environment may face renewed competition. This could spark pushback from certain industries, testing Ankara’s ability to balance international commitments with local economic pressures. The lira and Turkish equity markets may also reflect shifting investor sentiment as trade liberalization is weighed against political and economic uncertainties.

Looking Ahead: A New Chapter or a Tactical Gesture?
The key question is whether Turkey’s removal of tariffs represents the start of a broader reset in U.S.-Turkey trade relations, or if it is primarily a tactical gesture timed with Erdoğan’s U.S. visit. Much will depend on follow-up developments: whether Washington reciprocates with trade concessions, whether broader negotiations emerge, and how domestic stakeholders in both countries react.

For now, the move offers a positive signal to markets and suggests that Ankara is open to easing tensions that have lingered since 2018. Yet sustained progress will require more than a single policy reversal. Investors and policymakers alike will be watching closely to see whether this decision becomes the foundation of a durable shift in bilateral economic relations, or simply a temporary adjustment shaped by diplomatic expediency.