Turkey says Trump tariff move will harm ties, vows retaliation

Turkey says Trump tariff move will harm ties, vows retaliation

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

A new bout of selling Friday on increased strains with the USA forced the lira over six against the dollar for the first time, with the currency at one point shredding a quarter of its value in a single day.

Turkey's currency crisis has lurched on to the global stage, denting European and United States stocks as fears of contagion rise. Today, however, this does not appear to be on the cards, amid growing divisions between Turkey and the US.

The lira's value fell about 13 percent against the dollar on Friday.

Criticizing the state of the US relationship with Ankara, Trump announced on Twitter that he had authorized a doubling of duties on aluminum and steel imported from Turkey, making them 20 percent and 50 percent respectively.

I have just authorised a doubling of tariffs on steel and aluminium with respect to Turkey as their currency, the Turkish lira, slides rapidly downward against our very strong dollar!

The numbers have been sliding ever since President Erdogan's election victory in June, with concerns among foreign investors about his control of monetary policy as well as the birth of Turkey's new presidential republic.

"In that sense, the Turkey situation can be a contagion not only in Europe but across emerging markets", Anderson said. Financial upheaval there risks further destabilising an already volatile region.

Even before Trump's announcement, President Tayyip Erdogan told Turks to exchange gold and dollars for lira in order to fight "an economic war".

Investors have become increasingly concerned with the faltering Turkish economy, its central bank's willingness to respond to the downturn and the impact it could have on global financial markets, according to multiple reports. The White House said he had authorized them under asection of USA trade law that allows for tariffs on nationalsecurity grounds.




Politically, Turkey's finance minister continues to try to say the right things, including that the country will embrace a tightened fiscal policy in the coming months to achieve the strategic goal of "economic balance". High level meetings in Washington between US and Turkish officials ended this week without an apparent resolution.

These loans make up about 40 percent of the Turkish banking sector's assets.

A Turkish man waits to change his US dollars with Turkish liras inside a currency exchange shop in Ankara, Aug. 10, 2018. But some investors fear the Turkish economy is growing too quickly and could face problems.

'This is a national, domestic battle.

"Some countries have engaged in behavior that protects coup plotters and knows no laws or justice", he said. "Relations with countries who behave like this have reached a point beyond salvaging".

Erdogan has blamed outside forces for trying to bring down Turkey's economy. It is host to a critical part of the Western alliance's missile defense system again Iran.

President Trump called Brunson an "innocent man of faith" who should be released immediately.

"Making a speech like Albayrak's in the midst of a currency free fall without a single concrete measure shows utter lack of comprehension about what's happening and what's required", tweeted Harvard economist Dani Rodrik. Gulen has denied the allegation. Turkey wants Brunson to stand trial.

His cause resonates with Mr Trump's Christian conservative supporters. But Israel released that woman last month, and pastor Andrew Brunson of North Carolina remains in a Turkish prison.

Presenting the government's new economic model, he said the next steps of rebalancing would entail lowering the current account deficit and improving trust.

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