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

Why Trump's Turkey Tariffs Are Worrying Investors

Why Trump's Turkey Tariffs Are Worrying Investors

And so he announced he is going to double the steel and aluminum tariffs on them to make up for the fact "their currency" has slid so "rapidly downward against our very strong Dollar!"

It added: "We will continue to support our iron, steel and aluminium exporters by defending their interests against illegal practices of other countries on every worldwide platform, especially WTO".

President Trump's announcement Friday morning that he has authorized the doubling of tariffs on steel and aluminum imports coming from Turkey came in a tweet that noted, "Our relations with Turkey are not good at this time!". Trump wrote on Twitter.

The White House followed through on that threat on August 1 and sanctioned two top Turkish officials linked to Brunson's ordeal.

Turkish President Tayyip Erdogan told a rally Friday that his country would not yield to what he called bullying and blackmail.

The latest tariffs stem from the trade fight Trump launched earlier this year with several countries, including Turkey, according to the Washington Post.

Officials from Mr Erdogan's office said the two men "expressed pleasure" that relations between Turkey and Russian Federation were progressing "positively" amid joint defence and energy projects.

Investors fear Turkey is teetering on the edge of financial crisis following a dramatic plunge in its currency that has gathered pace this week.

The Turkish lira fell against the USA dollar due to mounting tensions between Turkey and the U.S. in the wake of Ankara's refusal to release American pastor Andrew Brunson who is suspected of being involved with a terrorist group.

But President Erdogan brushed off any concerns during a speech in the northeastern city of Bayburt on Friday, saying: 'The dollar can not block our path.

He railed against "those waging economic war" against Turkey.

"The dollar can not block our path".

The lira sell-off has deepened concern about exposure to Turkey, particularly whether over-indebted companies will be able to pay back loans taken out in euros and dollars after years of overseas borrowing to fund a construction boom under Erdogan.

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

Exacerbating the problems: a diplomatic standoff with the United States over the fate of a captive American missionary who Turkey has accused of espionage.

"I would say we would define progress as Pastor Brunson being brought home", Nauert said.

"Don't forget", he said, "if they have their dollars, we have our people, our God". The White House said he had authorized them under Section 232 of US trade law, which allows for tariffs on national security grounds.

He subscribes to the completely backward theory that lower interest rates cause lower inflation, which, now that he's given himself the power to pick the country's top central banker and made his son-in-law the finance minister, is actually being put to the test. Spoiler alert: It is not going well. "On some days, I end the day with a loss". He is a self described "enemy of interest rates" and wants banks to lend cheap credit to fuel growth, something experts are anxious could seriously affect the economy.

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