The impact of additional customs duty decision of the USA on steel export of Türkiye

Abstract

Steel products have an important spot among the export commodities of Türkiye to the United States of America (USA). The export of steel goods to the USA has been steadily rising over the years, along with other export commodities to the USA. Nevertheless, the imposition of a 25% supplementary customs tariff in 2018, motivated by political considerations, posed significant challenges for enterprises operating in the steel export industry. This study investigates how the USA's higher customs charge continues to affect Turkish steel in the industry. It analyzes monthly data from 2018 to 2023. Enders and Lee (2012) developed the Fourier ADF (FADF) unit root test to analyze the stationarity qualities of the examined series. If the series exhibits stationarity, the supplementary customs duty decision will have a transitory impact. Nevertheless, if the series possesses a unit root, the impact of the supplementary customs duty determination will be enduring. Based on the observed data, it can be concluded that the series does not exhibit any unit roots. Simply put, the FADF test rejects its primary hypothesis, indicating the presence of stationarity.