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Corporate

Message from the President

Tariffs Are Changing

Last time, our article was titled ‘Shifting Balances.’ Every day, significant changes are happening both in our country and globally. We now continue with tariffs. Since Trump took office, particularly with the tariffs he signaled against countries starting with China, we will see how these measures reshape balances in the future and who will be the winners and losers.

Speaking on behalf of our sector, I anticipate that these tariff changes will indirectly negatively affect us, especially in products tied to foreign exchange such as imported steels. We will witness this together in the near future. On the other hand, Chinese toolmakers, who already have advantages in cost and lead time, will likely respond to these new tariffs by aggressively expanding into markets, particularly in Europe.

Looking at our domestic market, compared to last year, it would not be wrong to say there has been about a 15% market contraction. However, with new automotive projects starting from June, I expect an upward momentum in our sector. Of course, the risk from China still persists, especially regarding sheet metal molds. Recently, our member companies have increasingly requested feedback and solutions on this matter. We aim to take action with a dedicated group meeting on this topic in May. Alongside this, workshops on plastic injection molds, especially for the automotive sector, will continue. The gap between import and export values for plastic injection molds remains very large.

I will continue my self-critical remarks, as in my previous articles and speeches.

The quality of molds and parts coming from China can no longer be ignored. They create a significant difference in terms of delivery times and manufacturing speed. Their feedback is very fast despite time differences, and everyone is aware of this. As domestic toolmakers, we have no choice but to deliver the quality-cost-time trio at the highest level, especially for the domestic market. Otherwise, we face the risk of contraction followed by closures. Global giants are merging as they cannot compete with China.

According to the presentation by Ryan Huang, President of the Chinese Toolmakers Association, in 2023, China’s mold import value decreased by more than 8% to 1.026 billion USD, while its mold export value increased by over 7% to 8.29 billion USD. Our export value is around 650 million USD.

Recently, we held an online meeting with my esteemed friend Stephan Berz, newly elected President of ISTMA Europe, our umbrella organization. Our main focus was strategy planning for the new term. Hopefully, we will attend the European General Assembly meeting in Berlin in November. Additionally, I was invited again this year to Rusmold Fair, where I participated as a country speaker last year. I will represent our country in the best way and make preliminary assessments for possible B2B collaborations in Turkey.

Wishing to meet again in prosperous days full of projects for our country and sector.

With my deepest love and respect,

Şahan EÇİN

Chairman of the Board, UKUB