Turkey lifted 2018 tariffs on U.S. goods to restart relations, boost bilateral trade

Turkey removed the extra tariffs it put on several U.S. products during a 2018 diplomatic row, clearing the path for a White House summit. The move lifts duties on a range of goods, from cars to whiskey, that Ankara introduced after the United States raised taxes on Turkish steel and aluminum when the two sides clashed over the arrest of an American pastor.

The trade ministry said the step is part of a plan to lift two-way commerce to $100 billion. The move lands just before a Thursday meeting between President Recep Tayyip Erdogan and U.S. President Donald Trump.

The Turkish leader wants the summit to mark a turning point for the uneasy ties between the NATO allies, and has proposed aircraft orders with Boeing Co. and Lockheed Martin Corp. worth tens of billions of dollars in total.

Turkish markets rose on expectations of major agreements with Washington. On Monday, the Borsa Istanbul 100 started up 2.1%, and by 9:56 a.m. the lira hovered near 41.3731 to the U.S. dollar. Aselsan and Turkish Airlines, seen as likely buyers of Boeing planes, led gains. Sovereign bonds gained as well; the two-year lira yield slipped 14 basis points to 39.62%, Bloomberg data showed.

The tariff rate the United States applied to Turkish goods was set at 15% in August, lower than many peers.

Turkey is expecting broader cooperation in energy and defense with U.S.

Ankara is now moving to broaden cooperation beyond industry. Ankara aims to finalize fresh energy agreements with the United States as soon as next week, part of a broader push to deepen ties spanning commodities to defense. People familiar with the talks, who requested anonymity, said the package may feature commitments to purchase additional U.S. LNG.

Erdogan is also seeking a meeting with Trump on the sidelines of the United Nations General Assembly in New York next week, the people said. The Energy Ministry in Ankara declined to comment.

This diplomatic and commercial outreach comes as Ankara works to rebuild ties with Washington after years of friction over Russian weapons purchases and divergent views on Syria’s war.

It also follows President Trump’s pressure on NATO partners, Turkey included, to halt purchases of Russian oil. Turkey ranks among the largest buyers of Russian crude, even while supplying Ukraine with drones and artillery shells. Erdogan has held off on sanctions against Russia and has sought to mediate between the two sides.

Turkey’s energy mix shows the same balancing act. Moscow remains its biggest gas supplier, providing about 41% of imports last year, according to Turkey’s regulator. But the United States has become its top source of seaborne supply, with volumes almost doubling from 2020 to 2024 and set to grow further after agreements signed at a conference last week. Energy Minister Alparslan Bayraktar also discussed LNG with U.S. oil and gas majors ConocoPhillips and Chevron Corp. during the event.

In nuclear power, Russia is building Turkey’s first plant, while Ankara has invited U.S. companies to invest in small modular reactors, which are quicker to build than regular facilities but are not yet widely available.

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