Published: Sat, August 11, 2018
Business | By Eloise Houston

U.S. to Increase Tariffs on Turkish Aluminum, Steel

U.S. to Increase Tariffs on Turkish Aluminum, Steel

"This innocent man of faith should be released immediately", Trump previously wrote on Twitter when it became clear Turkey would not release the evangelist, who was ordered to be held under house arrest.

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

Ankara and Washington, NATO allies, have been at loggerheads over the detention in Turkey of USA evangelical pastor Andrew Brunson on terrorism charges, prompting U.S. sanctions on two of Erdogan's ministers and threats of trade restrictions.

Pressure on Turkey is also coming from US Congress that moved late last month to block further F-35 deliveries to Turkey until it cancels the S-400 defence system deal with Russian Federation and Brunson is released.

After he spoke, Mr Trump tweeted that aluminium tariffs "with respect to Turkey" would be raised to 20% and steel to 50%.

The Turkish unit of currency, the lira, has been dropping due both to the policies of Turkish President Recep Tayyip Erdogan and that country's souring relationship with the United States.

'This is a national, domestic battle.

As President Erdogan continues to exert an iron grip on the government, economy, and people of Turkey, and the specter of a Turkish debt crisis continues to loom, the country's economy and currency are apt to remain under heavy pressure.

The lira fell as much as 18 per cent against the US dollar in its worst day since Turkey's financial crisis of 2001.

But analysts say that while there may be losses at banks, Turkey's economic problems do not pose a big threat to Europe or other big economies, like the United States.

Wall Street couldn't avoid the bloodbath on Friday triggered by a collapse of the Turkish lira amid escalating diplomatic tensions between the USA and Turkey.

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.

Albayrak also said steps on reducing the current account deficit would be taken and that Turkey would emerge stronger from this period.

They are also concerned over the central bank's ability to rein in persistent double-digit inflation with the president repeatedly calling for lower rates. "If they have the dollar, we have Allah", he said in a speech early today.

Q: Why is Turkey's currency so weak? As the currency drops, Turkish companies and households with debt in foreign currencies see their debts expand. President Erdogan has pressured the central bank to maintain low interest rates by refraining from implementing much-needed hikes.

That indicates that people are buying dollars and euros, not selling them off - and that they're not finding buyers in lira, anyway. It fell yet further to 6.2 to the dollar at 1254 GMT, almost 12 percent weaker on the day.

Like this: