Derman LLC

Published: August 2025

The US-Turkey trade landscape has undergone significant transformation in 2025, with the implementation of new reciprocal tariffs and sector-specific measures that directly impact Turkish manufacturers across industries. As of April 2025, the US has implemented a 10% baseline tariff on most imports, with certain sectors facing even higher rates of 25%. These changes are part of a broader shift in US trade policy aimed at re-industrialization and reshoring manufacturing capacity.

This comprehensive guide provides Turkish manufacturers with the latest intelligence on the evolving tariff environment, a framework for assessing impact, and actionable strategies for maintaining competitiveness in the US market. Drawing on Seraph’s deep expertise across manufacturing sectors, we outline a structured approach to navigating these challenges—from immediate response measures to long-term strategic positioning.

Key Insights

• Turkish manufacturers face a 10% baseline tariff (vs. China’s 125%), creating potential competitive advantages
• Sector-specific tariffs range from 15-25% for key Turkish export industries
• Companies that act decisively with data-driven strategies will gain market share
• The tariff environment is expected to remain in place with potential modifications

2025 US Tariff Environment

Latest Developments

On April 2, 2025, the US announced a sweeping new tariff structure with immediate implications:

Baseline Tariff: 10% additional duty on most imports

Country-Specific Rates:

• China: 125%
• Mexico/Canada: 25% (except USMCA-compliant)
• Turkey: 10% (subject to review)

US Content Advantage: Tariffs apply only to non-US content when at least 20% of value is US-originating

Sector-Specific Impacts

• Automotive: 25% on vehicles and components
• Textiles & Apparel: 15-20% on finished goods
• Electronics: 15% on consumer electronics
• Steel & Aluminum: 25% (continuing Section 232)
• Furniture: 15% on finished products
• Machinery: Variable rates by classification
• Food Processing: Generally lower impact

Strategic Opportunity

The significant tariff differential between Turkey (10%) and China (125%) creates immediate opportunities for Turkish manufacturers to capture market share in the US, particularly in categories where Chinese suppliers have been dominant.

Strategic Solutions

Navigating the complex 2025 tariff environment requires a structured approach. Seraph has developed a Tariff Response Framework specifically designed to help manufacturers assess impact, develop mitigation strategies, and implement solutions across multiple time horizons.

Key Action Areas

1. Establish Trade & Tariff War Room

• Cross-functional team coordination
• Intelligence monitoring
• Data visualization

2. Develop Commodity & Supplier Model

• HTS code validation
• Origin mapping
• Alternative sourcing options

3. Reboot Commercial Strategy

• Price elasticity analysis
• Contract review
• Classification optimization

4. Fortify Balance Sheets

• Working capital optimization
• Payment term adjustments
• Strategic inventory positioning

5. Evaluate Footprint Options

• US production assessment
• Third-country assembly
• Strategic partnerships

Turkish Advantages

• Favorable tariff position vs. China
• Strategic geographic location
• Established quality systems
• Competitive labor costs

Implementation Roadmap

Immediate Actions (30 Days)

1. Establish War Room – Set up command center with cross-functional team
2. Conduct Impact Assessment – Quantify exposure at product level
3. Develop Supplier Matrix – Map suppliers by country and tariff exposure
4. Review Contracts – Analyze for tariff-related provisions
5. Identify Quick Wins – Implement immediate high-impact actions

Medium-Term (60-90 Days)

1. Optimize Operations – Implement efficiency improvements
2. Engage Suppliers – Initiate tariff mitigation discussions
3. Execute Commercial Strategy – Implement pricing adjustments
4. Develop Product Modifications – Reduce tariff classification impact
5. Evaluate Footprint Changes – Assess manufacturing location options

Success Case Study

A global manufacturer facing 25% tariffs implemented Seraph’s framework in April 2025 with impressive results:

• Identified $12M annual tariff exposure
• Developed strategies to offset 60% of impact
• Implemented quick wins delivering $800K immediate savings
• Established war room driving ongoing implementation

Industry-Specific Strategies

Textiles & Apparel: Leverage Turkey’s established industry to capture share from Chinese suppliers facing 125% tariffs

Automotive Components: Focus on high-value parts with engineering advantages

Electronics: Target exempted component categories

Industrial Products: Emphasize quality and delivery reliability

Why Partner with Seraph

Seraph offers a distinct combination of deep industry expertise, a proactive approach to market intelligence, and a steadfast commitment to delivering tangible results. Our team consists of seasoned manufacturing and supply chain veterans with leadership experience across multiple sectors:

• Automotive: Vehicle assembly, component manufacturing
• Textiles & Apparel: Production efficiency, logistics
• Electronics: Complex supply chains, compliance
• Industrial Manufacturing: Operational excellence
• Consumer Products: Market entry strategies

Our Approach

• Hands-On Implementation: We don’t just advise—we work alongside your team to execute
• Data-Driven Decisions: Proprietary tools and models quantify impact and prioritize actions
• Cross-Functional Integration: We engage all relevant departments for comprehensive solutions
• Practical Solutions: Our recommendations are operationally viable and immediately actionable
• Measurable Results: We focus on delivering tangible bottom-line improvements

Take the Next Step

The complexities of the current US tariff environment present both challenges and opportunities for agile Turkish manufacturers. Seraph is ready to be your trusted partner in this journey, providing expert guidance and hands-on support to protect your interests, optimize operations, and capitalize on growth opportunities in the US market.

Begin Your Tariff Mitigation Journey Today

To schedule a confidential consultation or learn more about how Seraph can help your organization navigate the new US tariff reality, please contact us:

• Website: seraph.com
• Email: tariff-response@seraph.com
• Contact: Ambrose Conroy, Founder & CEO

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This analysis is based on Seraph’s comprehensive research and expertise in manufacturing operations and supply chain optimization. For the most current tariff information and personalized strategic guidance, contact our team directly.