Published: Sat, August 11, 2018
Global News | By Blake Casey

Trump doubles steel and aluminum tariffs on Turkey

Trump doubles steel and aluminum tariffs on Turkey

"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.

The lira, Trump noted on Twitter, "slides rapidly downward against our very strong Dollar!"

The drop in the lira has put increasing pressure on Turkish banks, given many companies have borrowed heavily in foreign currency.

The Trump administration's original move in March to raise tariffs on most steel and aluminum imports was proposed to safeguard U.S. jobs against overseas rivals.

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.

A financial shockwave ripped through Turkey on Friday, when its currency nosedived on concerns about its economic policies and a dispute with the US, which President Donald Trump stoked further with a promise to double tariffs on the North Atlantic Treaty Organisation ally. It has lost 40 percent of its value so far in 2018, and reached record lows following Trump's tweet.

He also condemned as "unacceptable, irrational and ultimately detrimental", the sanctions imposed by the USA on several Turkish cabinet members over the Brunson issue.

"This will be my people's response to those who have waged an economic war against us", he said.

The lira's fall has been made worse by President Recep Tayyip Erdogan's statements on economic policy.

"While Turkey's fundamental challenges are numerous, there are plenty of straightforward textbook solutions.an aggressive interest rate hike from the Central Bank would be a good start, something of the order of +1,000bp that Argentina delivered back in May would be appropriate at this juncture".

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While the lira's plunge could drag down the Turkish economy, the impact on euro zone banks in general is seen as modest, economists said.

Earlier on Friday, Trump ramped up his attack on Turkey by doubling United States tariffs on Turkish aluminium and steel imports to 20 percent and 50 percent, respectively.

Turkey's economy is regarded as fragile because of its high debt, which the global Monetary Fund estimates is 50 percent of its gross domestic product.

The prospect of a deal for Brunson's release appeared high as Turkish officials traveled to Washington this week, but the deal apparently fell apart over last-minute Turkish demands.

The Turkish lira hit an all-time low against the dollar on Friday, and there are growing concerns that the country's economic troubles could spread to the eurozone.

The lira was trading at 5.95 to the dollar, a loss on the day of 7.5 percent.

As far as ongoing effects on USA stocks, we'll have to wait and see. -Turkish relationship, a deterioration made worse by Turkey's worsening human rights record and increased cooperation with Russian Federation and Iran in Syria.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".

Steel futures on Friday were up 1 percent at $907 per ton on the New York Mercantile Exchange, but are up 46 percent from $621 per ton a year ago. This is a national struggle.

The latest escalation came as Turkey's Economy Minister Berat Albayrak, who is Erdogan's son-in-law and a trusted lieutenant, unveiled what was touted as a new economic plan, pledging Central Bank independence, tighter budget discipline and sustainable and healthy growth.

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