Why Türkiye slapped a 40% tariff on Chinese EVs: The bigger picture

One of the biggest topics in global business today is the rise of tariffs —additional taxes imposed on imported goods. U.S. President Donald Trump has brought in many of them with the aim of reducing trade deficits and encouraging the return of manufacturing jobs to the United States.

While much of the world has been focused on the U.S.-China trade dispute, another country joined the action earlier than many realised—Türkiye. In 2024, Türkiye added a 40% tax on electric cars coming from China¹. This move surprised many, as Türkiye is traditionally viewed as a U.S. ally and a firm believer in open markets. 

China didn’t stay quiet. It filed a complaint at the World Trade Organization (WTO), arguing that the tariff was unfair. According to China, Türkiye didn’t apply the same extra tax to electric vehicles (EVs) from European countries or others with trade deals—suggesting that this was a targeted move.² This quickly became one of the first major global trade spats focused specifically on EVs. 

So, why did Türkiye take this step? 

It’s all about Togg 
The decision traces back to President Recep Tayyip Erdoğan’s long-term vision of turning Türkiye into a serious player in the automotive industry—especially in EVs. Central to this ambition is Togg, Türkiye’s first domestically produced electric car brand. 

Founded in 2018, Togg is a joint venture backed by major Turkish industrial players including Anadolu Group, BMC, Kök Group, Turkcell, and Zorlu Holding, with support from the Union of Chambers and Commodity Exchanges of Turkey (TOBB). The initiative had both economic and symbolic importance: a homegrown high-tech product that could compete globally and reduce Türkiye’s dependency on foreign brands. 

In December 2019, the project reached a milestone when Togg unveiled its first prototype, an electric SUV, during a nationally televised event attended by President Erdoğan himself. 

By 2023, Togg vehicles began appearing on the roads. To date, more than 50,000 units have been sold, marking an impressive debut in a highly competitive market. 

But for Türkiye, Togg is more than a car. It’s a symbol of technological progress, economic independence, and national pride. And like any government protecting a strategic industry, Türkiye wasn’t going to let a flood of cheap Chinese EVs undercut its new-born carmaker. 

Protecting domestic industry—and balancing trade 
Türkiye’s tariff move serves two main goals:

1. Shielding Togg from early competition. Chinese EV manufacturers like BYD, Nio, and Xpeng have aggressively priced vehicles. Without a tariff, they could potentially dominate the Turkish market before Togg has a chance to grow. The tariff buys Togg time and space to gain a stronger foothold.
   
   
2. Addressing trade imbalances. Türkiye runs a significant trade deficit with China, driven largely by imports of electronics, machinery, and increasingly, vehicles. By imposing tariffs, Türkiye is sending a clear signal: if trade is to continue growing, it must be more balanced. 

Global implications 
Türkiye’s move adds a new layer to the evolving geopolitics of electric vehicles. As more countries begin investing in homegrown EV industries, protecting those industries from dominant players like China may become more common. This could lead to more trade disputes, more tariffs, and a reshaping of global supply chains.

It’s also a reminder that tariffs are no longer just about steel or textiles—they’re now about the industries of the future. 

In short, Türkiye’s 40% EV tariff is not an isolated decision. It’s a strategic one—rooted in economics, national pride, and the race for technological self-sufficiency. Whether it pays off in the long term remains to be seen. But one thing is certain: Togg, and Türkiye’s EV ambitions, just became much harder to ignore.