USA to Increase Tariffs on Turkish Aluminum, Steel

USA to Increase Tariffs on Turkish Aluminum, Steel

USA to Increase Tariffs on Turkish Aluminum, Steel

Trump said he had authorized higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminum and 50 percent one on steel.

Turkish President Recep Tayyip Erdogan on Saturday rejected "threatening language" of the US administration.

Last week, the United States imposed sanctions on Turkey's justice minister and interior minister for not releasing USA pastor Andrew Brunson.

The New York Times suggested that Trump could also be trying to offset the effects of Turkey's weakened currency on the existing tariffs.

Shares of Turkish steelmakers Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS and Eregli Demir ve Celik Fabrikalari TAS plunged as much as 8 per cent and 9.9 per cent, respectively, after Trump's tweet.

Erdogan Friday held telephone talks with Russian President Vladimir Putin, discussing economic and trade issues as well as the Syria crisis.

US President Donald Trump's "jubilation in inflicting economic hardship on its North Atlantic Treaty Organisation ally Turkey is shameful", Zarif wrote on Twitter. He urged Turkish citizens to immediately exchange their gold and dollars for lira.

"This is a domestic and national struggle", Erdoğan said, according to The Associated Press.

He also advised them to show solidarity by converting any stashed-away gold or foreign currency to lira in a bid to wage a "war of independence" against America. Erdogan's speech caused the value of the lira to drop even further.

Turkish President Tayyip Erdogan has remained defiant despite the lira being in free fall.

Turkish newspaper Hurriyet and other media reports quote Erdogan as making the comment to a group of worshippers following traditional Muslim Friday prayers during a visit to the northern city of Bayburt.

It fell to a record low this morning, and has now dropped 18 per cent today to 6.5 lira to the dollar, compared with 5.5 lira last night, as a deepening monetary crisis and diplomatic relations with the United States deteriorated.

Meanwhile, new Treasury and Finance Minister Berat Albayrak, also the president's son-in-law, previewed a new economic program for the country.

In June, the U.S. Senate passed a bill prohibiting Turkey from buying F-35 fighter jets because of Brunson's imprisonment and Turkey's purchase of Russia's S-400 air defense system.

Erdogan had raised eyebrows Thursday when he appeared to invoke divine intervention, saying: "If they have dollars, we have our people, we have our right and we have Allah!"

South Africa's rand took a sharp hit on Friday, over heightened worries that country might be next to face similar troubles to Turkey, like high inflation, an overheating economy and a lack of credible central bank independence. Turkish aluminum will now be taxed at 50% and steel at 20%, essentially pricing Turkish metals out of the US markets.

High-level meetings in Washington between US and Turkish officials over Brunson ended this week, apparently without a resolution.

Turkey is a major emerging market economy with $466 billion in foreign debt (about 78 percent in US dollars and about 18 percent in euros), or 52.9 percent of gross domestic product.

Independent analysts argue the central bank should instead raise rates to tame inflation and support the currency.

Brunson is now on trial in Turkey for espionage and terror-related charges linked to a failed coup attempt in the country two years ago. "This will be the response to those who have declared an economic war". Lindsay Graham of SC, said Trump's decision was retaliation against Turkey for not releasing Brunson.

"This could be the most expensive pastor in world history", Sekulow said, referring to the harm being done to Turkey's economy.

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