The bilateral trade relationship between TURKEY and the United States has grown substantially over the past decade, evolving from a primarily strategic alliance into a multidimensional economic partnership. As of 2024, total two-way goods trade between the two countries reached approximately $28.5 billion, with the United States recording a trade deficit with TURKEY of roughly $6.2 billion. By 2025, bilateral trade volume climbed to an estimated $31 billion, driven by strong Turkish export performance in manufactured goods, textiles, and automotive components. Early 2026 data suggests continued momentum, with annualized trade projections exceeding $33 billion.

TURKEY's export profile to the U.S. is dominated by industrial and manufactured goods. In 2024, the top Turkish export categories included:

• Machinery and mechanical appliances ($3.1 billion): Industrial boilers, turbines, and precision machinery components have become a cornerstone of Turkish exports, reflecting the country's growing manufacturing sophistication.

• Vehicles and automotive parts ($2.8 billion): TURKEY has emerged as a significant supplier of automotive components to U.S. manufacturers, including wiring harnesses, brake systems, and structural parts for major OEMs.

• Iron and steel products ($2.4 billion): Turkish steel mills — among the most competitive in the world — supply flat-rolled products, rebar, and specialty steel to U.S. construction and manufacturing sectors.

• Textiles and apparel ($1.9 billion): Despite competition from lower-cost Asian producers, Turkish textiles maintain a premium positioning in the U.S. market due to quality, compliance standards, and shorter lead times.

• Chemicals and plastics ($1.2 billion): Petrochemical derivatives, synthetic fibers, and specialty chemicals represent a growing segment of Turkish exports.

• Carpets, rugs, and floor coverings ($680 million): TURKEY remains the world's leading exporter of hand-knotted and machine-made carpets, with the U.S. as its largest single market.

• Jewelry and precious metals ($540 million): Turkish gold and silver jewelry, particularly from Istanbul's Grand Bazaar district manufacturers, commands significant U.S. market share.

• Marble, granite, and natural stone ($310 million): Turkish travertine and marble are widely used in U.S. luxury construction and renovation projects.

In 2025, Turkish exports to the U.S. grew by approximately 9.3% year-over-year, reaching an estimated $17.6 billion.

American exports to TURKEY are concentrated in high-value capital goods, energy products, and agricultural commodities. In 2024, the principal U.S. export categories included:

• Aircraft, spacecraft, and parts ($3.8 billion): Boeing commercial aircraft and defense aviation components represent the single largest U.S. export to TURKEY.

• Mineral fuels and petroleum products ($2.1 billion): Liquefied natural gas (LNG), refined petroleum products, and coal exports have grown significantly as TURKEY diversifies its energy supply.

• Machinery and mechanical equipment ($1.7 billion): Industrial machinery, construction equipment, and agricultural machinery.

• Electrical machinery and electronics ($1.4 billion): Semiconductors, integrated circuits, medical imaging equipment, and telecommunications hardware.

• Pharmaceutical products ($980 million): Innovative biopharmaceuticals, oncology drugs, and specialty medications.

• Agricultural products ($870 million): Cotton, soybeans, corn, and tree nuts.

The tariff framework governing TURKEY–U.S. trade is shaped by several overlapping policy regimes. TURKEY is not a party to a bilateral free trade agreement with the United States — negotiations for a Transatlantic Trade and Investment Partnership (TTIP) stalled in 2016 and have not been formally revived.

As a result, Turkish goods entering the U.S. are subject to Most Favored Nation (MFN) tariff rates under the WTO framework. The U.S. average MFN applied tariff rate is approximately 3.4%, though rates vary significantly by product category:

• Steel and aluminum: Turkish steel exports were subject to Section 232 tariffs of 25% on steel and 10% on aluminum, imposed in 2018. In 2025, a modified tariff-rate quota (TRQ) system was agreed, providing preferential access for up to 1.2 million metric tons annually at the standard MFN rate.

• Textiles and apparel: U.S. tariffs on Turkish textiles range from 12% to 32% depending on fiber content and product type.

• Automotive parts: Most automotive components enter the U.S. at MFN rates of 2.5%–6.5%.

TURKEY was graduated from the U.S. GSP program in 2019 on the grounds that it had achieved sufficient economic development. The loss of GSP benefits increased the cost of Turkish exports to the U.S. by an estimated $1.5 billion annually and remains a point of contention in bilateral trade discussions.

The U.S. and TURKEY are parties to a Bilateral Investment Treaty (BIT) signed in 1985 and entered into force in 1990. The BIT provides protections including national treatment, most-favored-nation treatment, protection against expropriation without compensation, and access to international arbitration.

U.S. foreign direct investment (FDI) in TURKEY reached a cumulative stock of approximately $12.8 billion as of end-2024. Turkish FDI in the United States reached an estimated $4.2 billion in cumulative stock by end-2024.

Defense and Aerospace: The F-16 modernization program — approved by the U.S. Congress in early 2024 — represents a $23 billion commitment over the program's lifecycle, including 40 new F-16 Block 70 aircraft and 79 modernization kits.

Energy: In 2024, the U.S. became TURKEY's third-largest LNG supplier, with volumes reaching 4.2 billion cubic meters. Turkish energy companies signed long-term LNG supply agreements with U.S. exporters in 2025, locking in supply through 2035.

Technology and Digital Economy: U.S. cloud computing providers (AWS, Microsoft Azure, Google Cloud) made combined investments exceeding $2 billion in Turkish data center infrastructure in 2024–2025.

Agriculture and Food: Turkish olive oil exports to the U.S. reached $180 million in 2024, making the U.S. TURKEY's largest olive oil export market.

Turkish companies engaged in U.S. trade and investment face a complex regulatory environment:

• Export controls and sanctions compliance: U.S. export control regulations (EAR, ITAR) apply to technology transfers and re-exports involving TURKEY.

• Anti-dumping and countervailing duty proceedings: Several Turkish product categories have been subject to U.S. anti-dumping investigations.

• CFIUS review: Turkish investments in U.S. companies in sensitive sectors may be subject to review by the Committee on Foreign Investment in the United States.

• Tax treaty: The U.S.–TURKEY income tax treaty provides reduced withholding tax rates on dividends (5%–15%), interest (10%–15%), and royalties (5%–10%).

The absence of a bilateral free trade agreement remains the most significant long-term constraint on trade growth. Industry estimates suggest that a comprehensive FTA could increase bilateral trade by 40%–60% over a decade.

For Turkish companies and investors, the U.S. market remains the world's largest and most dynamic economy — offering unparalleled opportunities for growth, capital access, and brand development. ULF New York is uniquely positioned to serve as the legal bridge between Turkish business ambition and American market opportunity.