EVFED Accelerates Push to Eliminate Extra Stainless Steel Duties

EVFED has launched a fresh campaign to remove the extra customs duties on Turkey's stainless steel sector.

Transfer Pricing and Tax Tension

The ongoing profit‑distribution dispute within the Posco Assan TST partnership resurfaced with Kibar Holding filing a lawsuit against POSCO. The claims question the extra customs duties and anti‑dumping measures that form the basis of the “local producer incurs losses” argument.

EVFED's Strategic Move

EVFED Chairman Güçlü Kaplangı announced that the two‑year‑long theses have been validated by the legal process and outlined the following actions:

■A new dialogue framework will be established with the relevant ministries together with all federation members.

■Data sets demonstrating the tax impact will be shared publicly.

■An official request for the reassessment of customs duties is being prepared.

Potential Economic Impact

■Rising duty rates from 8% → 12% → 16% have heightened cost pressures for over 40,000 producers in the sector.

■The duty hike could trigger production cuts, a 5%‑7% drop in exports, and an increase in imports, potentially shaving %5‑%7 off GDP.

■Transfer‑pricing suspicions boost Posco Assan’s consolidated profit while leaving the local plant in the red.

Policy and Regulatory Landscape

■The anti‑dumping investigation concluded in December 2025, setting the extra duty at 16%.

■Revisiting current protection measures could reshape sectoral competition.

■Aligning Turkey’s tax policy with WTO commitments is essential for compliance with international trade rules.

Rüzgar Ersoy – Director of Fintech and Banking

The increased duties on stainless steel will raise borrowing costs and worsen credit risk for banks exposing the sector. Liquidity strains on SMEs will pressure banks' Net Interest Margins (NIM). EVFED’s data‑driven lobbying can bring transparency to regulators’ decisions, supporting structural reforms that strengthen Turkey’s industrial‑financial integration. This development should be seen as part of a broader effort to stabilize and modernize the sector.