Şimşek: U.S.-Türkiye Trade Deficit Reaches $78 Billion Over Two Decades

Türkiye has accumulated a $78 billion trade deficit in its trade relations with the United States over the past 20 years, Finance Minister Mehmet Şimşek stated in an interview with private broadcaster TV 100 on Feb. 8. He emphasized that Türkiye does not benefit from a free trade agreement with the U.S., which has contributed to the imbalance.

“The U.S. is already imposing high taxes on us. There is no justification for further increasing these tariffs,” Şimşek noted, addressing concerns about potential new trade barriers.

He pointed out two key considerations regarding possible U.S. tariff hikes: “First, such measures could have indirect effects on Türkiye. Second, the U.S. might take politically motivated steps in trade policy.”

Despite these concerns, Şimşek expressed optimism about diplomatic relations, noting that Türkiye maintains positive ties with the U.S. government. “We have good relations with the new U.S. administration. The dialogue between our President [Recep Tayyip Erdoğan] and the U.S. President [Donald Trump] is strong,” he said, adding that he does not foresee the U.S. implementing specific protectionist measures against Türkiye.

Turkish Economy on the Path to Stability

Discussing the broader economic outlook, Şimşek asserted that Türkiye has navigated through its most challenging period. “We still face macroeconomic challenges, but we have brought many of them under control. Some issues require time to resolve, but we have the capacity and strategy to address them,” he stated.

He highlighted key economic improvements, including a decline in inflation, a shrinking budget deficit, a sustainable current account balance, and adequate foreign exchange reserves.

Şimşek projected that inflation would fall to approximately 24% by the end of the year, attributing this progress to a comprehensive policy framework that integrates monetary, fiscal, revenue, price control, and supply-side strategies.