Trump doubles steel and aluminium tariffs on Turkey as lira nosedives

Turkey’s interbank exposure

(The last substantial hike was in January 2018; before then, it was in late 2013, when Turkey was dealing with the end of the U.S. Federal Reserve's quantitative easing program.) The country could also place controls on capital, but those can hamper private sector activity and won't be easy considering the government's relative inability to totally control private capital.

The currency has fallen 66 per cent since the start of the year, pushing up the cost of goods for Turkish people and shaking global investors' confidence in the country.

President Trump has doubled USA tariffs on Turkish steel and aluminium, as the precipitous fall of the Turkish lira accelerates.

"At a time when evil continues to lurk around the world, unilateral actions against Turkey by the United States, our ally of decades, will only serve to undermine American interests and security", Erdogan said in the article.

Financial upheaval there risks further destabilising an already volatile region.

The Turkish lira hit a record low on August 10 after President Donald Trump authorized the doubling of tariffs on imports of Turkey's steel and aluminum.

"As he stated, the president has authorized the preparation of documents to raise tariffs on imports of steel and aluminum from Turkey", White House Deputy Press Secretary Lindsay Walters said.

"Over the years, Turkey rushed to America's help whenever necessary", he said, listing a few occasions the two countries acted together.

Turkey remains at loggerheads with the United States over the detention for the last two years of American pastor Andrew Brunson and a host of other issues.

Brunson denies both charges and his supporters argue that these accusations were fabricated by the Turkish government.

Google Pixel 3 XL leak is best look yet at new phone
If you dislike the iPhone X due to its notched display at the front , you are going to hate the Pixel 3 XL even more. From the looks of things, Google will continue to include the audio adapter with the new Pixel 3 devices.

The Brunson dispute triggered the collapse in the Turkish currency as investors feared USA financial sanctions.

In this file photo taken on July 11, 2018, US President Donald Trump (L) speaks with Turkey's President Recep Tayyip Erdogan (R) as they arrive for a North Atlantic Treaty Organisation summit at North Atlantic Treaty Organisation headquarters in Brussels.

Erdogan appealed to a crowd in the city of Bayburt to exchange dollars and gold for Turkish lira to prop up the plunging currency.

Mr Erdogan's "tight grip" on the central bank and the fact "higher interest rates do not fit with Turkey's economic growth strategy" meant that the central bank has kept interest rates on hold, Nora Neuteboom, economist at ABN Amro, told AFP.

"Some countries have engaged in behavior that protects coup plotters and knows no laws or justice", he said. This will be my people's response to those who have waged an economic war against us'.

"Failure to reverse this trend of unilateralism and disrespect will require us to start looking for new friends and allies".

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. The ruble fell the most since the 2015 oil shock after the USA announced new sanctions on Russian Federation over a nerve-agent attack in the U.K. Amid it all, Elon Musk roiled Tesla Inc.'s shares with a tweet signaled he'd take the firm private. The plunge in the value of the currency coupled with an inflation rate of almost 16% could cause a lot of damage to Turkey's economy. The Nasdaq composite was down more than 0.8 percent as technology stocks also dropped.

Although Mr Erdogan struck a defiant tone, his foreign ministry called for diplomacy and dialogue to solve problems with the US.

Ties have been strained by differences over Syria, and the trial in Turkey of United States evangelical Christian pastor Andrew Brunson for allegedly supporting the group Ankara blames for an attempted coup in 2016.

Related News:



Most liked

National Football League preseason 2018: Giants vs
The second of those scampers - a 5-yard, red-zone dash on fourth-and-2 - set up Mayfield's 10-yard touchdown toss to David Njoku . The Giants went on to kick a 42-yard field goal, putting them ahead 3-0 after twelve minutes into the first quarter.

Israeli Airstrikes Hit Gaza After Hamas Launches Rocket Attacks
Israel Railways has said that trains will not be running on the line between Ashkelon and Sderot. The rockets came after two Hamas fighters were killed by Israeli fire on Tuesday.

Trump Administration Outlines 'Space Force' Plan, But Obstacles Remain
The secretary will oversee a unified combat command that will coordinate activities and establish combat doctrines for space. Only Congress has the authority to establish a new branch of the military-something that hasn't happened since the U.S.

Moms of 11 children found at New Mexico compound arrested
The missing child's grandfather, Siraj Wahhaj, is a well-known Muslim imam of the Masjik Al-Taqwa mosque in Brooklyn, N.Y. Wahhaj, who was heavily armed, at first refused to cooperate but was eventually "taken down", the sheriff's office said .

Liverpool 3-1 Torino: Reds end pre-season with victory at Anfield
Salah's driving run across the box teed the striker up for a shot which found the top corner via a deflection. His squad looks deep, sharp and impressive five days ahead of a league season carrying high expectation.

Arsenal preparing late £89m bid for 21 year-old
By the second week of July, Raiola had already met with representatives of Barcelona to offer the player to the Catalan club. Mourinho on Monday warned of a hard season ahead if the Premier League runners-up do not strengthen their side.

Roy Hodgson dismisses reports Wilfried Zaha wants to leave Crystal Palace
According to the Daily Mail , a potential swoop for Crystal Palace forward Wilfried Zaha will be at the top of the agenda. Zaha is a man in demand as the transfer window for Premier League clubs to make signings enters its final stretch.

Chelsea 0 Lyon 0 - Blues go close and youngster impressing in friendly
Eden Hazard returned to action for Chelsea as they rounded off their pre-season campaign by beating Lyon on penalties. "As you can see, I'm still at Lyon ".

Chicago weekend gun violence kills 9, injures more than 50
Johnson said that both murders and shootings are down on the year, but said this weekend showed there was still a lot to do. Police believe some of the multiple-victim attacks were random although most appear connected to gang-related violence.

Conor McGregor will fight against Russian Khabib Nurmagomedov for UFC lightweight title
Why? First of all, there's the fact that Nurmagomedov now carries around the lightweight championship belt. Our two-year patience, however, is about to be rewarded - because Conor McGregor vs.

Newcastle United Players To 'Strike' Over Bonuses Dispute
The club announced that Muto has signed an initial four-year contract at St James' Park. The club had survived the drop and had Rafa Benitez for another year.

S.Sudan's Kiir vows power sharing deal with rival will hold
President Kiir also said the remaining outstanding issues will be finalized with his rivals as soon as he arrives in Khartoum. A similar arrangement fell apart in July 2016 when fighting erupted in the capital, Juba, and Machar fled the country.

US Economy Adds Fewer Jobs Than Expected In July
Strong demand from consumers and businesses sharply reduced the stockpiles of goods held on many store shelves and warehouses. United States employment has risen for 94 consecutive months, the longest jobs-expansion streak on record.

Former Viking Randy Moss inducted into Hall of Fame
But he also thanked the Pats coach for much more than football, which got a huge smile out of the otherwise surly Belichick. During his speech, Owens didn't waste any time talking about the snub.

Highlights: Bank of England's Carney speaks after raising interest rates
Highlighting the inflation, the MPC projected 4.6 per cent in Q2FY19, 4.8 per cent in H2 of FY19 and 5 per cent in Q1FY20. Bank staff believe this weakness was temporary and expect the economy to expand by 0.4% in the second quarter.