Economy

Tariff Shockwaves Hit Turkey's Agriculture: Onion Duty Slashed to 5% While Walnut Costs Surge

724FinanceDr. Aslıhan Demir
Tariff Shockwaves Hit Turkey's Agriculture: Onion Duty Slashed to 5% While Walnut Costs Surge

Turkey's food prices are being reshaped by a new customs tariff regime; onion duties plunge to 5%, while walnut import costs jump by 70%.

Tax Shockwaves Across Agricultural Commodities

The latest Official Gazette decrees (11506 and 11508) reset duties on key food items such as dry onion, walnut, dried sweet pepper, pasta, glucose, and oligofructose.

Historic Cut on Onion Imports

  • Duty rate: from 49.5% down to 5%
  • Effective until: 31 August 2026
  • Exempt countries: Bosnia‑Herzegovina, Singapore, Kosovo (preferential rates remain)
  • Anticipated impact: downward pressure on wholesale and retail onion prices
  • Walnut Costs Skyrocket

  • Shell‑on walnut extra cost: $451/ton → $738/ton
  • In‑shell walnut extra cost: $1,099/ton → $1,772/ton
  • Exempt countries: Shell‑on – Bosnia‑Herzegovina, Kosovo, United Arab Emirates; In‑shell – Bosnia‑Herzegovina, United Arab Emirates
  • Market effect: protection for domestic walnut producers, potential drop in import volumes
  • New Surcharges on Peppers and Pasta

  • Dried sweet pepper: EU, UK and several blocs rise from 19.5% to 41%
  • South Korea: 19.5%, Malaysia: 15.6%
  • Bosnia‑Herzegovina, Kosovo, Venezuela: 0% (zero tariffs)
  • Pasta categories: 10% additional customs duty (egg‑based, egg‑free, vegetable, dried, noodle variants)
  • Exempt nations: EU, UK, Bosnia‑Herzegovina, EFTA, South Korea, Malaysia, Kosovo, Iran, Venezuela
  • Tightened Use of Sugar‑Derivative Inputs

  • Glucose and oligofructose preferential duties limited to confectionery, medical foods, and enteral nutrition products
  • Zero duty retained for certain glucose types used in hemodialysis solutions and specific industrial goods
  • Transition Period and Market Outlook

  • New tariffs took effect on 11 July 2026
  • Importers filing customs declarations within 30 days can still apply pre‑change duties
  • Analysts expect short‑term relief for onion prices, but higher costs for walnuts and peppers may translate into price hikes
  • Dr. Aslıhan Demir: While these measures aim to stabilize consumer prices in the short run, the asymmetric tariff adjustments will reshape trade flows. The surge in walnut and pepper costs is likely to push importers toward alternative sourcing and bolster domestic producers' competitiveness. The temporary onion duty cut should support price stability, but a reassessment will be needed after 31 August. The overall inflationary impact remains uncertain, hinging on fluctuations in the food price index over the medium term.
    Dr. Aslıhan Demir

    Financial Analyst: Dr. Aslıhan Demir

    Makroekonomi ve Para Politikaları Akademisyeni. FED (Federal Reserve) ve TCMB tutanaklarını satır satır okuyan, faiz kararlarının güvercin (dovish) veya şahin (hawkish) tonlarını analiz eden baş ekonomist.

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