Published: Sat, August 11, 2018
Markets | By Otis Pena

Trump doubles metal tariffs on Turkey as lira falls by 20%

Trump doubles metal tariffs on Turkey as lira falls by 20%

Turkey is now under a 25 percent tariff on imported steel and 10 percent on aluminum, which went into effect in March.

Turkey delivers just 4 percent of steel mill imports, valued about $1.18 billion past year, according to the US Department of Commerce.

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

The CDS surge shows investors are betting Turkey will now have more trouble paying its debt and is a good barometer for investor fears who now rank Turkey more risky than Greece.

The United States and Turkey are already at loggerheads over trade, defense deals, the future of the US mission in Syria and Ankara's warming ties with Russian Federation.

The new duties on Turkey are double the level that Trump imposed in March on steel and aluminium imports from a range of countries.

The lira, which has lost a third of its value this year, fell on his comments and was trading at around 6.05 to the dollar after he spoke, almost 9 percent weaker on the day.

It had already fallen more than 40% in the past year.

The Turkish lira fell to record lows as concerns over a widening rift with the United States persisted after a Turkish delegation returned from talks in Washington with no apparent solutions. For China, stabilizing a fellow emerging economy's currency has value, but Beijing could also benefit from becoming an economic friend to a North Atlantic Treaty Organisation state whose relationship with the West is increasingly strained.

'Multiple fatalities' in Canada shooting
Costello had two daughters from a previous relationship, but McLean said he was also a role model for her own two children. Travis Hrubeniuk, 27, said his fiancee had just left for work around 7:45 when he began hearing a steady stream of sirens.

Turkey's President Recep Tayyip Erdogan saluting supporters after Friday prayers, in Bayburt, Turkey, yesterday.

The president's characteristic defiance in the face of a shaky economy has further unnerved investors. Meanwhile, recent changes at the Turkish Central Bank (CBRT) have raised new questions of whether the CBRT still has the independence and autonomy to fight higher inflation like they have on the past. Turkey, you see, has hurt itself with bad policies, tried to blame foreigners for this fact, but then, unbelievably, seen Trump seem to vindicate their scapegoating by trying to bring their economy down in retaliation for them bringing it down themselves.

Turkish President Recep Tayyip Erdogan says his country is at war and will not lose.

Emerging market currencies are ending the week with a brutal sea of red across the board, with consistent losses throughout Asia, while the South African rand and Turkish lira are leading the way with losses within the EMEA.

And of course, Brunson and the other detainees, including local staff of the United States diplomatic mission and various persons thought in some cases to be Gulenist Turkish-Americans, would have to be released.

In a tweet, Trump cited the decline in Turkish currency as justification for increasing tariffs to 50 percent on Turkish steel and 20 percent on Turkish aluminum. Furthermore, consternation in the U.S. Congress has led to a nascent bill that could limit Turkey's ability to obtain loans from any U.S. -based financial institutions. -Turkish relations is a dispute over an American clergyman who has been jailed in Turkey since December 2016.

Despite Trump's insistence, Turkey has not budged in freeing American pastor Andrew Brunson, who has been detained by Turkey for nearly two years on charges that he was working with a terrorist organization and was a spy.

Ties between the countries have been strained as Washington has urged Ankara to release Andrew Brunson, an American pastor being held under house arrest on terrorism charges.

The currency drop is particularly painful for Turkey because the country finances a lot of its economic growth with foreign money. Mario Ritter was the editor.

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