Turkish Currency Collapses After Trump Doubles Metals Tariffs

Turkish Currency Collapses After Trump Doubles Metals Tariffs

Turkish Currency Collapses After Trump Doubles Metals Tariffs

President Trump said Friday the US will double tariffs on steel and aluminum for Turkey, noting the relationship between the two states "are not good at this time!".

Turkey has detained Mr Brunson for almost two years, accusing him of links to the outlawed Kurdistan Workers Party and the Gulenist movement, which Turkey blames for a failed coup in 2016.

He said the tariffs on aluminum imports would be increased to 20 percent and those on steel to 50 percent as the Turkish lira "slides rapidly downward against our very strong Dollar!" But those talks on Thursday showed no signs of breakthrough.

Meanwhile, investors are anxious about the economic policies of President Recep Tayyip Erdogan, who won a new term in office in June with sweeping new powers.

He declared: "Our relations with Turkey are not good at this time!".

President Donald Trump said in a tweet Friday that he would hit Turkey with additional tariffs, as their national currency continues to drop. In his speech in the northeastern city of Bayburt, Erdogan added that he would decisively defend the country against economic attacks.

"We will not lose the economic war", state-run TRT Haber television quoted Erdogan as saying.

Turkish President Recep Tayyip Erdogan has lashed out against a shadowy worldwide "interest rate lobby" which he suggested was "campaigning" to harm Turkey's economy, after the lira fell more than 14 percent overnight.

This came in the wake of sanctions imposed by Mr Trump for Turkey's refusal to free pastor Andrew Brunson, who the nation detained on terror charges despite the insistence of the U.S. he is innocent.

"Aluminum will now be 20% and Steel 50%", President Trump wrote.

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Policy errors created the current situation, with Turkey's central bank decision not to raise rates in their last meeting a key driver, said Charlie Wilson, an emerging markets-focused portfolio manager at Thornburg Investment Management in Santa Fe, New Mexico.

The president then told Turks not to be disheartened by the loss to the dollar.

The Washington Post newspaper said the US administration was doing everything to strengthen its hand in the Brunson case, but the decision would do nothing but cause more problems for bilateral relations.

The Lira touched a historic low versus the U.S dollar.

The move could affect $1.7 billion of Turkish exports.

But it's unclear exactly how Turkey is threatening national security.

"The basic reason the exchange rate has gone off the rails is that confidence in the management of the economy has disappeared both domestically and overseas", said Seyfettin Gursel, a prominent economist and a professor at Turkey's Bahcesehir University.

"Before it is too late, Washington must give up the misguided notion that our relationship can be asymmetrical and come to terms with the fact that Turkey has alternatives". Much to the opposition of members of Congress on both sides of the aisle and other member nations of NATO, Turkey announced plans to acquire a Russian missile defense system.

A statement from the Kremlin said the two leaders discussed economic and trade ties.

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