Steel Companies in a Turmoil of “Trade Wars”: A View from Turkey

Abstract

The tariffs imposed by the United States (U.S.) on Turkish-origin steel products in 2018 undeniably affected the strategic behavior of steel companies based in Turkey. The objective of this paper is to analyze through semi-structured interviews how the trade strategy of Turkish steel firms is affected by these tariffs. Conventional wisdom commends that corporate response of steel companies against the tariff imposition focused mostly on two main strategies: seeking alternative markets and innovation-based product diversification. Our findings suggest that, a mixture of political and economic reasons lie behind the levies. This makes the Turkish case interesting in the overall trade wars between the U.S. and a multitude of countries, especially in the emerging-market concept.