Trade Deficit Expands Sharply in April 2025

Turkey experienced a significant rise in its foreign trade deficit in April 2025, reaching $12.92 billion, an increase of 22.3% compared with the same month last year. Over the first four months of the year, the trade deficit widened by 14.7%, totaling $34.59 billion. These figures were reported by the Turkish Statistical Institute TUIK and the Turkish Undersecretariat of Customs, highlighting ongoing economic challenges amid global market pressures and local inflation.

The expanding deficit reflects a growing gap between the country’s imports and exports, driven in part by elevated prices of energy and raw materials, which Turkey heavily relies upon. Experts warn that such a deficit could strain foreign reserves and affect currency stability if not addressed through targeted economic policies.

Iron & Steel Exports Show Resilient Growth

Amid the broader trade imbalance, Turkey’s iron and steel exports demonstrated notable resilience. In April alone, iron and steel exports amounted to $861.14 million, representing a 7% increase year-on-year. This category ranked as Turkey’s seventh-largest export, underscoring its importance to the national economy.

From January to April 2025, iron and steel exports climbed by 7.6% to $3.53 billion. This growth signals sustained demand for Turkish raw steel products in international markets, particularly from European and Middle Eastern buyers seeking competitively priced steel supplies.

Mixed Performance Iin Finished Steel Articles Exports

While raw steel exports rose, Turkey’s exports of iron or steel articles, finished or semi-finished steel products, painted a more mixed picture. April 2025 saw exports in this category increase by 11.6% to $740.12 million. However, over the January to April period, exports fell by 5.2% to $3 billion.

Industry analysts suggest this decline may reflect challenges in global construction and manufacturing sectors, which consume finished steel goods. Supply chain disruptions and fluctuating raw material costs may also have affected production and delivery schedules.

Structural Factors Influencing Steel Export Trends

Turkey’s steel sector benefits from its strategic geographic position, linking Europe, Asia, and the Middle East. Local manufacturers leverage access to raw materials, a skilled workforce, and competitive production costs. However, the sector faces headwinds including rising energy costs, fluctuating global demand, and trade tensions.

Trade policies, tariffs, and international competition also impact steel exports. Turkish exporters must navigate a complex global landscape, balancing price competitiveness with quality and timely delivery.

Key Takeaways

• Turkey’s foreign trade deficit rose 22.3% year-on-year to $12.92 billion in April 2025, totaling $34.59 billion for the first four months.

• Iron and steel exports increased 7.6% year-on-year to $3.53 billion in January-April 2025, while exports of finished steel articles fell 5.2% to $3 billion.

• The steel industry’s growth supports the economy, but rising trade deficits highlight the need for export diversification and production innovation.