Turkey's trade deficit decreases by 12.1% in July
In a significant development, Turkey's exports surged to a record high of $3.8 billion in July, marking a 11% increase compared to the same month the previous year. This growth was primarily driven by the parity in the automotive and chemical sectors, according to Mustafa Gultepe, the President of the Turkiye Exporters' Assembly (TIM).
The country's trade deficit also decreased by 12.1% year-on-year in July, as exports reached $156 billion in the first seven months of 2025. Seventeen sectors posted export growth in July, while nine sectors saw a decline.
Ankara, Bolu, Çankırı, Edirne, and Muğla hit record monthly figures in July, contributing to the overall growth. Key sectors such as ready-made clothing, steel, and electrical and electronics also saw significant increases. Ready-made clothing exports amounted to $1.58 billion, steel exports were $1.4 billion, and electrical and electronics exports were $1.57 billion.
Service exports in July are estimated to have reached $11.8 billion. In a press conference in Samsun, Trade Minister Omer Bolat made these announcements, highlighting the positive trends in Turkey's trade sector.
However, Turkey's trade with the U.S. market continues to face challenges. Current trends show moderate growth in bilateral trade volumes, a strategic focus on defense exports, and ongoing negotiations to improve tariff conditions. The U.S. has recently increased tariffs on Turkish goods from an initial 10% to 15% starting August 2025.
Despite this increase, Turkish officials emphasize that Turkey still enjoys relatively favourable tariff status compared to many Asian and Latin American countries, helping Turkish exporters retain competitive advantages. Ongoing diplomatic and technical talks aim to secure better tariff terms for strategic sectors such as steel, automotive, and copper, as well as textiles and apparel.
Between 2024 and 2025, Turkey's exports to the U.S. rose slightly by about 2.85%, from roughly $1.33 billion to $1.37 billion, while imports from the U.S. decreased by around 2.84% during the same period. Turkey's main export products to the U.S. include hand-woven rugs, cement, and motor vehicle parts, and its main imports from the U.S. consist of petroleum gas, scrap iron, and aerospace products.
Despite these challenges, TİM remains focused on increasing its share in the U.S. market. The Turkish defense industry is expected to exceed $8 billion in exports in 2025, signalling a record year and reflecting the country's increasing domestic industry localization and global competitiveness.
In conclusion, Turkey's trade is thriving, with record-breaking exports in July, but ongoing tariff adjustments and sector-specific negotiations with the U.S. remain key challenges influencing the trade environment.
- Diplomatic talks in Turkey are currently focusing on securing better tariff terms for several strategic sectors, including steel, automotive, copper, textiles, and apparel, with the ultimate goal of increasing the country's share in the US market.
- The Turkish defense industry is anticipated to exceed $8 billion in exports in 2025, a record high, demonstrating the country's growing domestic industry localization and global competitiveness, despite ongoing challenges with US trade.
- While Turkey's exports to Istanbul rose slightly between 2024 and 2025, its trade with the US market continues to face challenges, with an increase in tariffs on Turkish goods and ongoing negotiations for improved tariff conditions.
