Trump OKs stiffer tariffs on Turkish metals as lira plummets

An investor looks at an electronic board showing stock information at a brokerage house in Shanghai China. Aly Song Reuters  File

Recep Tayyip Erdoğan, Turkey's president, remained defiant over the weekend, accusing foreign interests of waging an economic war against Turkey, and pledging trade measures to reduce reliance on the dollar and U.S. markets.

Trump tweeted that the latest tariff decision came as Turkey's currency, the lira, "slides rapidly downward against our very strong Dollar".

Turkey has arrested an American pastor and put him on trial for espionage and terror-related charges linked to a failed coup attempt in the country two years ago.

President Donald Trump announced Friday that he plans to double steel and aluminum tariffs on Turkey - prompting the lira to plunge 20 percent - amid heightened tensions between the two North Atlantic Treaty Organisation allies.

President Donald Trump doubled United States tariffs on Turkish steel and aluminium, saying "US relations with Turkey are not good at this time".

Trump is also declaring that, "Our relations with Turkey are not good at this time!".

The tariff for steel imported from Turkey will now be 50 percent.

The Lira has lost almost a third of its value this year, as relations with the United States have become increasingly strained.

Stocks in the USA and Europe skidded Friday as investors anxious about the financial stability of Turkey and how it might affect the global banking system.

Trump announced the action Friday on Twitter.

Speaking in the north-eastern province of Rize, Erdogan said that dollars, euros and gold were now "the bullets, cannonballs and missiles of the economic war being waged against our country".

In another opinion piece in the pro-government newspaper Daily Sabah, Mr Erdogan's spokesman, Mr Ibrahim Kalin, said Turkey's efforts to solve the crisis diplomatically had been dismissed by the Trump administration, warning Washington it might completely lose Ankara as an ally.

In Rize, Erdogan said the United States would pay a price by challenging Turkey for the sake of "petty calculations", denouncing Washington for declaring "economic war on the entire world" and holding countries "for ransom through sanction threats".

A delegation of Turkish officials held discussions with their counterparts in Washington this week but there was no sign of a breakthrough.

The White House has said the newly-imposed sanctions would take effect from August 13. Following the tweet, Turkey responded by imposing duties on $1.8 billion in USA goods including coal and paper.

On Friday, Turkey's currency, the Lira, fell as much as 14%, causing the global financial markets to shudder. It is unclear how that would justify higher tariffs on Turkey but not other countries.

But Erdogan vowed there would be no easing of the law in Brunson's case, saying: "We have not made concessions on justice so far, and we will never make any".

Silence from the central bank has highlighted investor fears over the institution's independence from Erdoğan, who was sworn in last month with wider executive powers that many worry will be used to wield greater influence over monetary policy.

Related:

  • Sarri not aiming to repeat Napoli formula at Chelsea

    Sarri not aiming to repeat Napoli formula at Chelsea

    The return of the industrious Kante no doubt helped him focus on the areas he excels in. Could they be potential title challengers this season?
    Tom Brady close to signing contract adjustment with New England Patriots

    Tom Brady close to signing contract adjustment with New England Patriots

    The Athletic and ESPN reported Brady expected his pending contract adjustment to be in place before Week 1 of the regular season. ACL tears typically take at least six months to recover from and the track record of being the same player has been mixed.
    Moscow to treat new US sanctions as act of economic war

    Moscow to treat new US sanctions as act of economic war

    His administration has sanctioned a number of Russian officials and oligarchs for human rights abuses and election meddling. Mike Pompeo , the secretary of state, said Russian Federation had violated worldwide law by using a chemical weapon .
  • Arsenal Manager: Pep Is Better Me

    Arsenal Manager: Pep Is Better Me

    The Welsh midfielder is expected to return to the side after he resumed training but may not be 100% fit to play 90 minutes. City's strength in depth was illustrated when Mahrez made way for Kevin de Bruyne just before the hour mark.
    Marco Silva will not consider deadline day signings for Wolves trip

    Marco Silva will not consider deadline day signings for Wolves trip

    Upon joining Everton , Mina told evertontv , "It is important that the club want to fight for something". Asked specifically about his chat with Silva, he continued: 'I did not need a lot of convincing.
    Schuette wins Michigan Republican governor primary - 8/7/2018 8:45:03 PM

    Schuette wins Michigan Republican governor primary - 8/7/2018 8:45:03 PM

    Just over 28 percent of the voting-age population cast ballots, an increase from the previous high of 24 percent from 1982. The number of female House nominees is at least 185 nationwide and stands at 10 in MI , which also are records.
  • Early sunrise: Mission to 'touch' the sun blasts off from Florida

    Early sunrise: Mission to 'touch' the sun blasts off from Florida

    The spacecraft will analyse so-called " space weather ", which is large eruptions of radiation from the sun which batter Earth. The mission will last 6 years and 11 months, and in that time the Parker probe will orbit the sun 24 times.
    Horizon Air hijacking: 'pilot' performs stunts before crashing

    Horizon Air hijacking: 'pilot' performs stunts before crashing

    Two F-15 jets were scrambled in response to the stolen plane from the Oregon Air National Guard in Portland, Oregon. Authorities initially identified the man as a mechanic but have since then said he was a ground service agent.
    Download Fortnite for Android on non-Samsung phones

    Download Fortnite for Android on non-Samsung phones

    Well, now Google is making it extra-clear that you can't download Fortnite with a bespoke message in mobile search results. Epic has to share 30 percent of those purchases made on iOS devices with Apple due to the terms of the App Store.
  • Premier League 2018-19, Liverpool vs West Ham United

    Premier League 2018-19, Liverpool vs West Ham United

    Jurgen Klopp says he could be without up to SEVEN first team players when Liverpool face West Ham at Anfield this weekend. Summer signing Naby Keita is a guaranteed starter in one of the three midfield slots for the Merseysiders.
    Perseid meteor shower: how to see shooting stars this weekend

    Perseid meteor shower: how to see shooting stars this weekend

    There's no need to look in any direction - the shooting stars should be visible in every part of the sky, weather permitting. This weekend (August 12-13th) marks the peak period to view the Perseids across all of North America.
    Higher US tariffs increase pressure on Turkish economy

    Higher US tariffs increase pressure on Turkish economy

    The new duties on Turkey are double the level that Trumpimposed in March on steel and aluminum imports from a range ofcountries. Minutes before Ankara learned about the higher tariffs , the lira had already hit an all-time low of 6.87 against the dollar.

Comments

Other news