Trump OKs stiffer tariffs on Turkish metals as lira plummets

Trump OKs stiffer tariffs on Turkish metals as lira plummets

Trump OKs stiffer tariffs on Turkish metals as lira plummets

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.

Brunson's charges include spying for the PKK, listed as a terrorist group by both the USA and Turkey, and the Fetullah Terrorist Organization (FETO), the group behind the defeated coup attempt in Turkey of July 2016. The sides held talks in Washington this week but failed to resolve the spat.

Turkish President Recep Tayyip Erdogan warns his country's partnership with the United States might be in "jeopardy" as tensions intensify between the two North Atlantic Treaty Organisation allies. Our relations with Turkey are not good at this time!

Trump pointed out on Twitter that the lira was not doing well, but one of Erdogan's economic advisers, Yigit Bulut, responded that the sell-off in the lira had caused $300 billion in losses in the USA stock market. Erdogan's speech caused the value of the lira to drop even further.

Treasury and Finance Minister Berat Albayrak - who is Erdogan's son-in-law - was scheduled later on Friday to outline a "new economic model".

President Tayyip Erdogan told Turks to exchange gold and hard currency into lira on Friday, framing Turkey's currency crisis as a "national battle" against economic enemies.

Last week the USA government announced sanctions against Turkey's interior and justice ministers, to which Ankara responded by freezing the assets of two American officials in Turkey.

On Friday, President Trump announced that he will double America's metal tariffs on Turkey - despite the fact that he has no good reason for doing so.

Meanwhile, markets are deeply concerned over the direction of economic policy under Erdogan, with inflation at almost 16 percent but the central bank reluctant to raise rates in response. "If they have the dollar, we have Allah", he said.

Brunson's arrest in October 2016 soured already deeply-strained relations with Washington.

The lira sell-off has deepened concern particularly about 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.

Economists say that while the government may be tempted to muddle through the current situation in the hope the external and economic background improves, the lira's fall harbours considerable dangers for the economy, in particular the banking system.

The lira dropped 11 percent against the US dollar Friday as Turkish President Recep Erdogan warned of a global economic war against his country. "This is a national, domestic battle", he said.

Erdogan said high foreign exchange rates were the means used in plots against Turkey.

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

Turkey's woes have been aggravated by investor worries about the economic policies of Erdogan, who won a new term in office in June with sweeping new powers.

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