Published: Mon, August 13, 2018
Worldwide | By Lisa Hogan

Trump announces 'doubling' of tariffs on steel, aluminum on Turkey

Trump announces 'doubling' of tariffs on steel, aluminum on Turkey

Mr Trump said tariffs on aluminium imports would be increased to 20% and the tariff on steel imports will be raised to 50% as the Turkish Lira "slides rapidly downward against our very strong Dollar!".

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 did not specify any countries.

Erdogan reportedly was defiant, telling worshipers after Friday prayers that Turkey "will not lose the economic war".

Turkey's currency fell Friday after its economy was rattled by the United States' move to slap the country with more tariffs.

Inflation stands at almost 16% but Turkey's central bank is reluctant to act - especially with the president having described himself as an "enemy of interest rates".

"You can never bring this nation in line with the language of threats", Erdogan told a crowd of supporters in the Turkish town of Unye on the Black Sea coast.

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

After nearly 20 months in a Turkish jail, Brunson was moved to house arrest in July by a court.

On Thursday, Mr Erdogan said: "If they have their dollar, we have the people, we have Allah".

Turkey's currency plunged to fresh all-time lows against the dollar Friday after President Donald Trump announced in a tweet that he would double tariffs on Turkish aluminum to 20% and on Turkish steel to 50%.

An important emerging market, Turkey borders Iran, Iraq and Syria and has been mostly pro-Western for decades. Financial upheaval risks further destabilizing an already volatile region.

Turkey later said Erdogan had held a phone call with Russian President Vladimir Putin to discuss economic ties.

"I am asking you".

The lira dropped by over 11 percent in value in one day on Friday morning to almost six lira per dollar. "During this period, Turkey has set records in its exports, production and employment", Erdogan said.

Erdogan replied that Turkey will not back down despite Trump's sanctions policy and said he would answer with mirror retaliation.

The dollar rose as exposure to Turkey could impact European banks and spark a domino effect as people begin to pull out of those banks and into USA assets, said Gregan Anderson, macroeconomic strategist at brokerage Bulltick LLC. "They are bullets, cannonballs and missiles of an economic war waged against our country", he said.

Presenting the government's new economic model, he said the next steps of rebalancing would entail lowering the current account deficit and improving trust. "Today I am instructing my friends that we will freeze the assets of U.S. secretaries of justice and interior in Turkey", he said last week.

Donald Trump took to Twitter yesterday to boast about the value of the dollar against the lira.

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