Economy
US-China trade talks ‘going well’ on 2nd day: Lutnick
Trade talks with China were going well, U.S. Commerce Secretary Howard Lutnick said on Tuesday as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a new rupture in fragile ties between the superpowers.
Having agreed to step back from a full-blown trade embargo at a first round of talks in Geneva in May, the two sides are now seeking agreement after they accused each other of trying to throttle supply chains with a raft of export controls.
White House economic adviser Kevin Hassett said on Monday that the U.S. could lift recently imposed export controls on goods such as semiconductors if China sped up the delivery of rare earths and magnets that are crucial to its economy.
The blow-up over rare earths, which has sparked alarm in boardrooms and factory floors around the world, came after last month’s preliminary deal in Geneva to cut tariffs, which eased investor fears that a trade war would lead to a global slowdown.
“(Talks went on) all day yesterday, and I expect them all day today,” Lutnick told reporters. “They’re going well, and we’re spending lots of time together.”
Trump’s shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs.
But markets have made up much of the losses they endured after Trump unveiled his sweeping “Liberation Day” tariffs in April, aided by the reset in Geneva between the world’s two biggest economies.
The second round of U.S.-China talks, which followed a rare phone call between Trump and Chinese President Xi Jinping last week, comes at a crucial time for both economies.
Customs data published on Monday showed that China’s exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID-19 pandemic.
While the impact on U.S. inflation and the jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure.
Discussing disagreements
The two sides, led at the talks by U.S. Treasury Secretary Scott Bessent, Lutnick and U.S. Trade Representative Jamieson Greer, with the Chinese contingent helmed by Vice Premier He Lifeng, are meeting at the ornate Lancaster House in the British capital.
The talks ran for almost seven hours on Monday and resumed just before 10 a.m. GMT on Tuesday, with both sides expected to issue updates later in the day.
The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths have become. He did not attend the Geneva talks, when the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other.
China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains.
In May, the U.S. responded by halting shipments of semiconductor design software, chemicals and aviation equipment, revoking export licences that had been previously issued.
Hassett said he expected any export controls from the U.S. to be eased and rare earths released in volume once the two sides had shaken hands in London.
But he said any easing would not include the “very, very high-end Nvidia stuff,” referring to Nvidia’s most advanced artificial intelligence chips that have been blocked from going to China over concerns about potential military applications.
“I’m talking about possible export controls on other semiconductors which are also very important to them,” he said.
Turkish household appliances and consumer electronics manufacturer Arçelik has agreed to buy Whirlpool’s remaining 25% stake in Beko Europe for 71.5 million euros ($82 million), taking full ownership of the unit as it simplifies its partnership with the U.S. group.
The move follows Arçelik’s April 2024 acquisition of Whirlpool’s European operations, after which the U.S. company retained a minority stake in Beko Europe.
Arçelik said a shareholder agreement with Whirlpool had been terminated, but the existing brand licensing agreement would remain in place.
In a separate deal, Arçelik sold shares equal to 2.9% of its capital – previously acquired through a buyback program – to Whirlpool for TL 2 billion ($44 million). The sale price of TL 103.71 per share was at a slight discount to the previous close.
The company also said it had completed all payment obligations related to its 2022 acquisition of Indesit and Whirlpool’s operations in Russia, with a final payment of 40 million euros.
Structure simplified
Cemal Demirtaş, general manager for research at Istanbul-based Ata Invest, said the transactions are expected to result in a net cash outflow of around 70 million euros, while generating a one-off contribution of 100 million euros to 110 million euros to other operating income.
“We view these steps as positive in terms of simplifying the structure and supporting debt management,” Demirtaş said.
He said Arçelik had a market value of about $1.5 billion and net debt of roughly $3.7 billion as of the first quarter, adding that recent asset sales point to a focus on deleveraging.
However, operational pressures remain.
“Both domestic and international operations are still facing challenges in terms of growth and profitability. A recovery in demand and margins is critical to strengthen cash flow and reduce leverage,” Demirtaş said. “Otherwise, high debt levels could continue to weigh on the stock.”
Arçelik shares were up 0.1% at 10:01 a.m. GMT.
Treasury and Finance Minister Mehmet Şimşek said Friday that Türkiye and Germany have significant potential to deepen cooperation in key industries and strengthen partnerships in third-country markets.
Şimşek’s remarks came after he met with German Economy and Energy Minister Katherina Reiche in Ankara, where the two sides discussed bilateral economic ties, opportunities for closer cooperation and recent geopolitical developments.
Reiche arrived in the Turkish capital for two days to help foster new and deeper business activity in Türkiye. She was accompanied by representatives from the energy, tourism and technology sectors.
In a post on social media following the talks, Şimşek said Türkiye and Germany were “natural strategic partners” at a time when companies and governments worldwide are seeking to diversify supply chains and reduce vulnerabilities.
“There is tremendous scope to expand our cooperation in defense and aerospace, mobility, energy and digital transformation,” he noted.
“There is also significant potential to strengthen our partnerships in third-country markets where both countries already maintain a strong presence,” Şimşek added.
Germany is Türkiye’s largest trading partner, with bilateral trade volume exceeding $52 billion, and is one of the leading sources of foreign direct investment in the country.
Reiche said the two countries intend to deepen their economic ties, highlighting Türkiye’s role as a commercial, energy and security partner.
“We need Türkiye as a reliable trading partner, but also to achieve common political goals,” she noted.
She drew attention to Russia’s invasion of Ukraine and the war in Iran, which she said she hoped would be brought to a permanent end.
Trade, energy ties
Reiche also met with Turkish Trade Minister Ömer Bolat as part of the Türkiye-Germany Joint Economic and Trade Commission, or JETCO, meeting.
The two gave a positive assessment of the trade development between the two countries, with the German minister noting that Türkiye is the European Union’s fifth-largest trading partner.
Germany’s trade with Türkiye accounts for about one-quarter of the bloc’s total trade with the country, she said.
During the meeting, the officials signed a new economic cooperation protocol and reaffirmed their goal of increasing bilateral trade to $60 billion.
The talks covered trade, investments, industrial cooperation, energy transition, green and digital transformation, transportation, connectivity and potential cooperation in third countries, Bolat said.
Turkish companies have invested nearly $3 billion in Germany, while German companies rank first among foreign investors in Türkiye, operating about 8,600 firms and holding $26.5 billion in direct investments, he noted.
Reiche said investments by German companies in Türkiye were wide-ranging, adding that “the reverse is also true.” German investors wanted to further expand their position on the Turkish market in the future, she added.
In addition to being an important NATO ally, Reiche also sees Türkiye as a valuable partner in Germany’s efforts to diversify its gas and electricity supplies, particularly following the global upheavals caused by the closure of the Strait of Hormuz as an oil supply route.
“We cannot just stand by and watch passively,” she said. Both sides agreed to expand their energy partnership, established in 2012. “Let us turn today’s challenges into tomorrow’s strengths,” Reiche added.
In response to the recent oil crisis, she argued, there must be a parallel focus on multiple energy sources. Germany and Türkiye agree that there must be openness to different technologies – “and openness to everything that companies bring to market.” Both sides have set out their energy objectives in a protocol.
Customs union, visas
Bolat said the protocol they signed records progress achieved by both sides and provides a road map for future cooperation.
The ministers also discussed the modernization of the Türkiye-EU Customs Union.
“As the EU shapes new trade, industrial and sustainability policies, including the ‘Made in EU’ framework, it is vital that these initiatives remain inclusive,” Bolat said.
“These policies must strengthen the highly integrated supply chains built over decades,” he added.
Visa facilitation was also on the agenda, particularly Germany’s “cascade” visa system, which Bolat said has helped improve visa appointment and application procedures since July last year.
“Visa rejection rates have fallen from around 25% to 14%. At this point, the German side plans to accelerate the process regarding businesspeople, students, artists, NGO members and transporters,” he said.
“We once again emphasized our justified demands for visa-free travel for Turkish citizens,” he added.
Later on Friday, Reiche was expected to attend the German-Turkish Energy Forum with Energy and Natural Resources Minister Alparslan Bayraktar.
Before departing for the Turkish capital, she said German companies should benefit in the coming years from the country’s announced multibillion-euro investments.
They have the opportunity to tap into the Eurasian market thanks to highly qualified Turkish specialists, she added.
The economy minister described Türkiye as an energy hub between Europe, the Middle East and the Caucasus.
“Türkiye is not only a reliable partner – it is clearly focused on growth in the energy sector,” she said.
The COP31 climate conference in Türkiye later this year could become “the summit where political commitments turn into measurable progress,” a top German official said on Thursday.
The energy crisis triggered by the war in the Middle East has fueled calls for countries to shift away from fossil fuels and step up efforts to deploy renewable energy.
“The collective experience with the Strait of Hormuz, and how vulnerable most of us are to fossil-fuel price shocks, could make the decisive difference,” German Environment Minister Carsten Schneider said.
“Climate action today is also about economic strength, security of supply and competitiveness.”
Schneider’s remarks came after a two-week annual U.N. climate change talks in the western German city of Bonn wrapped up.
Bonn is where texts are drafted and differences are narrowed ahead of the decisions taken by political leaders at the U.N.-sponsored COP31 climate talks, which are due to start Nov. 9 in Antalya, southern Türkiye.
Schneider said the Bonn meetings had shown that the Paris climate agreement remained the common benchmark despite geopolitical tensions. “Now its implementation must accelerate significantly,” Schneider told dpa.
He called on more countries to submit ambitious new climate targets ahead of COP31. Türkiye will host the summit, while Australia will oversee the formal negotiations.
Backsliding risk amid geopolitics
U.N. climate chief Simon Stiell said Thursday countries made some progress at the Bonn talks, but warned against backsliding as geopolitical tensions stalk negotiations.
In a statement, Stiell said “real strides” were made on issues including ensuring a “just transition” to ensure the shift to a low-carbon economy is fair and inclusive.
He also recalled that Türkiye unveiled a target to make electricity account for one-third of the world’s energy demand by 2035.
The aim would be to shift transport, heavy industries, and home heating away from running on oil, coal and gas, to instead use technologies like electric industrial furnaces, electric cars and heat pumps.
“In key areas we’ve taken real strides forward,” Stiell said, while acknowledging that “in others, we have seen some side-stepping and stalling. We’ve seen geopolitical tensions washing through these halls.”
“We simply cannot afford to reopen previous decisions, to renegotiate existing targets, or to backslide,” he said.
He warned countries against “cherry-picking” the global commitments that “suit tactically in the moment.”
He cited commitments to science, the Paris Agreement’s ambitious goal of limiting warming to 1.5C from preindustrial levels and pledges by rich nations to provide more climate finance to developing countries.
Environmental groups praise Türkiye’s proposal
At the same time, environmental organizations gave the Bonn conference a mixed assessment.
They welcomed the proposal by the Turkish government to increase the global share of electricity in final energy consumption from 20% to 35% by 2035.
Laura Schafer from pressure group Germanwatch praised the initiative as a “positive sign,” adding that it was “crucial to underpin this target with concrete national measures – including in Germany.”
Oxfam climate expert Jan Kowalzig emphasized that “electrification is, in principle, an important step toward climate neutrality, but only if it is accompanied by a consistent transition to renewable energy.”
On the other hand, the organizations agreed that the pace of the conference had been far too slow.
“We have witnessed structural paralysis here in Bonn,” warned Greenpeace climate expert Jannes Stoppel. Negotiations were progressing in “baby steps” when “giant strides” were needed, he said.
Fentje Jacobsen of WWF Germany said climate finance had once again remained a major sticking point.
The climate crisis can only be halted if coal, oil and gas take a back seat and renewable energies shape the future, Jacobsen said.
“But here, too, concrete progress is lacking. We can see that in Germany as well. The federal government is currently putting on the brakes instead of pushing ahead with the energy transition at full speed,” she said.
Climate facts increasingly challenged
U.N.’s Stiell criticized what he described as a tendency for countries to wait for others to act first.
“In some negotiating rooms, we’ve heard a familiar tendency toward you-first-ism: Groups refusing to deliver commitments or allow the process to move forward unless others go first.”
Representatives from several countries, including Switzerland, Sierra Leone and Pacific island states particularly affected by rising sea levels, complained at a press conference that facts about the climate crisis were increasingly being challenged during the negotiations.
They argued that the conferences were intended to find solutions to climate change, not to debate the current state of scientific knowledge.
Schneider backed those concerns and also criticized attacks on the scientific foundations of climate research.
“It is encouraging that a large number of countries from both the Global South and the Global North are standing together against this,” he said.
More than 6,500 delegates from governments, the scientific community, business and civil society from almost all U.N. member states have attended this year’s Bonn conference.
Türkiye completed its longest and fastest metro line on Friday with the opening of the final section of the project that further expands Istanbul’s rail transport network and strengthens links between the city center and its main airport.
President Recep Tayyip Erdoğan attended the inauguration of the 22-kilometer (13.7-mile) Halkalı-Arnavutköy section, the last phase of the project that he said would significantly improve transportation for millions of Istanbul residents.
The final leg brings the total length of the fully underground Gayrettepe-Istanbul Airport-Halkalı line to 69 km. The route includes 16 stations.
“We are weaving our city, one of the world’s largest metropolises, with a population of 16 million and nearly 20 million annual visitors, stitch by stitch with a network of railways,” Erdoğan told the opening ceremony.
Before the event, he inspected the line, telling reporters that it’s “a manifestation of a modern vision.”
The first 47-kilometer section was put into service gradually in recent years.
The Kağıthane-Istanbul Airport leg was inaugurated in late January 2023, the Kağıthane-Gayrettepe section was opened in late January 2024, while the Arnavutköy-Istanbul Airport leg was launched in March of the same year.
The opening of the Halkalı-Arnavutköy section marks the completion of “one of the longest metro lines not only in Türkiye but in the world,” Erdoğan said.
The line will operate at speeds of up to 120 km per hour, making it Türkiye’s fastest metro route and one of the longest underground airport metro connections in the world.
The newly opened section includes five stations: Ibn Haldun University, Kayaşehir, Olimpiyatköy, Halkalı Stadium and Halkalı.
With the addition of these stations, around 1.5 million residents in Istanbul’s Başakşehir and Küçükçekmece districts will gain direct rail access to both the city center and Istanbul Airport.
The route is integrated with several major transportation networks.
At Halkalı station, passengers can connect to the Marmaray commuter rail system running beneath the Bosporus, high-speed rail services, the Halkalı-Bahçeşehir suburban line and the Yenikapı-Kirazlı-Halkalı metro line.
Additional transfers are available to the M3 metro line at Kayaşehir, the M9 line at Olimpiyatköy and the future M7 extension at Halkalı Stadium.
“Millions of our citizens now have easy access to central locations in Istanbul,” said Erdoğan.
Travel times on the completed route will be significantly reduced, with journeys between Halkalı and Istanbul Airport estimated to take around 30 minutes and trips between Halkalı and Gayrettepe lasting 57 minutes.
The line also incorporates Türkiye’s first domestically developed railway signalling system, produced by defense electronics company Aselsan.
The network will operate using a fully automated driverless system. Of the 25 train sets deployed on the route, 15 were manufactured to fully driverless standards.
The government estimates that the project will generate total economic benefits of 935 million euros (nearly $1.1 billion) by 2043 through time savings and lower road maintenance and operating costs.
Officials project that reduced traffic congestion alone will save travellers approximately 117 million hours over the period.
Türkiye on Friday said it had approved Uber Technologies Inc.’s acquisition of the delivery arm of Turkish company Getir from Emirati controlling shareholder Mubadala.
The global logistics giant said in February it had agreed to acquire Getir’s delivery arm, expanding the U.S.-based company’s Turkish footprint.
“The commitment by Uber Technologies Inc. to invest a total of US$500 million in Türkiye is expected to support high-quality employment, strengthen local engineering capabilities, and positively contribute to the development of Türkiye’s digital and technology infrastructure,” the Competition Authority (RK) said on Friday.
The deal comes after Uber purchased the majority of the stake in another popular delivery service firm – Trendyol Go – in Türkiye last year.
Following the closing of the deal, Uber said it plans to combine Getir and Trendyol Go.
Uber also announced last year it would establish a software and technology development center in Türkiye, with plans to invest $200 million.
Türkiye is raising the transit fee charged on international vessels passing through the Turkish straits by almost 15% as of July, a top official said on Friday.
The fee, calculated under the 1936 Montreux Convention in “gold francs” and based on vessels’ net registered tonnage, is updated annually.
“We will update the fee charged per net ton from ships, which was $5.83 in 2025, to $6.70 as of July 1,” Transport and Infrastructure Minister Abdulkadir Uraloğlu said.
Türkiye had charged $0.80 per net ton from 1983 until Oct. 7, 2022, Uraloğlu told Anadolu Agency (AA).
The fee was revised to $4.08 per net ton in 2022. It was later raised to $4.42 from July 2023, $5.07 from July 2024, before being hiked to $5.83 last year.
The Turkish straits, comprising the Bosporus and Dardanelles, are among the world’s most important maritime chokepoints, connecting the Black Sea to the Mediterranean.
Uraloğlu said vessels passing through the waterways without stopping at Turkish ports are charged under three categories in line with the Montreux Convention: health inspection, lighthouse and salvage services.
He said the latest revision will increase foreign currency revenue for the Treasury.
Revenue from ship transits stood at $38 million between July 2021 and June 2022, before rising to $223 million between July 2024 and June last year.
That figure is expected to reach $254 million as of late June this year, Uraloğlu said.
“The rise in revenue and the price updates show the contribution to the economy,” he said, adding that the revision aims to strengthen foreign currency inflows and increase public revenue.
President Erdoğan traveled on the Halkalı-Istanbul Airport Metro Line! He gave the good news: It will be free until July 31
Turkish home appliance maker Arçelik takes full control of Beko Europe
Izmir Mayor Tugay quits CHP amid escalating party turmoil
President Erdoğan traveled on the Halkalı-Istanbul Airport Metro Line! He gave the good news: It will be free until July 31
Turkish home appliance maker Arçelik takes full control of Beko Europe
Izmir Mayor Tugay quits CHP amid escalating party turmoil
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