WTO panel finds Turkey's 40% tariff on Chinese electric vehicles breaches trade rules

A World Trade Organization panel ruled that Turkey's additional 40% tariff on electric vehicles imported from China, as well as duties on certain hybrid vehicles and discriminatory import‑licensing requirements, violate the 1994 General Agreement on Tariffs and Trade (GATT). China filed the dispute in October 2024 after Turkey imposed the tariff and related restrictions on Chinese‑origin cars.

The panel concluded that the tariffs exceed the limits Turkey pledged under GATT and that the licensing system treats Chinese electric and plug‑in hybrid vehicles less favorably than comparable Turkish models. The panel rejected some of China's other claims but affirmed that the measures do not qualify for WTO exemptions. Both parties may appeal, though the WTO Appellate Body has been inactive since 2019. The ruling does not instantly force Turkey to drop the measures; they must be adopted through the WTO dispute‑settlement process unless appealed. China welcomed the decision, urging Turkey to correct the violations.

The case underscores ongoing tensions in global automotive trade and highlights the challenges faced by the WTO’s dispute‑resolution mechanism.