Trump doubles tariffs on steel, aluminum from Turkey

Trump doubles tariffs on steel, aluminum from Turkey

Erdogan is preaching calm as his country's currency collapses.

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

But on Friday, there was another distinct element that made things worse: a tweet from President Trump.

Turkish President Recep Tayyip Erdoğan struck a defiant note in a series of Twitter messages shortly before Trump's announcement.

A diplomatic source, however, familiar with talks of Turkish deputy foreign minister Sedat Onal in Washington this week, told The National that exchanging Mr Brunson for Mr Atilla is not on the table from the United States side.

But the immediate trigger is North Carolina pastor Andrew Brunson, who has been detained in Turkey's Aegean province of Izmir since October 2016 on thinly supported espionage and terror charges.

A 20 percent fall in exports would only reduce GDP by 0.1 percentage point or less per year in the 19 countries that use the euro currency.

He said he had authorized higher tariffs on imports from the United States' NATO ally, imposing duties of 20 percent on aluminum and 50 percent on steel.

Turkey's financial crisis and further US pressure spurred more concern among investors as fears appeared to spread to American markets.

The Turkish lira plunged on Friday, raising questions about the country's financial stability, as investors anxious about the president's unorthodox economic policies and a dispute with the United States that has led to sanctions. The fall of the lira has accelerated dramatically in 2018, but Friday's one-day collapse far eclipsed any previous slide.

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

There are multiple factors, many of which are related to the economic policies of Turkey's leader, Recep Tayyip Erdogan.

Mr Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fuelling economic growth.

The new set of economic steps are aimed at securing an economic growth of 3-4 percent in 2019, and decreasing the inflation rate to single digits, the ministry said in a press release on August 9.

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira", he said on national television. "This is a national, domestic battle", he told a crowd in the northeastern city of Bayburt, according to Reuters.

He appeared to blame foreigners for trying to hurt Turkey, saying: "This will be my people's response against those waging an economic war against us".

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

Finance Minister Berat Albayrak is due to announce the government's latest plan for the economy at a press conference at 11:30 GMT.

"Another of our principles is to provide full independence in monetary policies", he stressed.

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