Turkey is hopeful that Donald Trump’s new administration will lower tariffs on its steel and textile exports, according to Trade Minister Omer Bolat. This optimism, following Trump’s recent election victory, has strengthened the lira. The lira climbed 0.4% to 34.2 per dollar, its highest since mid-October.

Bolat mentioned that lower tariffs could benefit Turkey’s defense and financial sectors, adding that Trump’s promises to impose a 10% tariff on all imports and focus on ending conflicts in Ukraine and Gaza might also play a role in strengthening U.S.-Turkey relations. Bolat anticipates that the upcoming administration could ease sanctions impacting Turkish banks and defense needs.

Investors see Trump’s focus on peace as complementary to Turkey’s economic turnaround led by Finance Minister Mehmet Simsek. Turkey’s recent policies have cooled inflation below 50% from over 75% in May, while net reserves have grown to US$60 billion, attracting foreign investments and supporting further economic stability.