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Turkey doubles tariffs on some US imports over economy 'attacks'

16 Août 2018

Farid Alam, on the other hand, feels that Turkey's economic crisis will at most discourage foreign investment in Pakistan as investors become less tolerant to emerging markets.

The pastor row is one of several between the North Atlantic Treaty Organisation allies, including diverging interests in Syria and US objections to Ankara's ambition to buy Russian defense systems, that have contributed to instability in Turkish financial markets.

Turkey is now in the middle of a severe financial crisis with the collapse of its currency in recent days. Turkey's exports to the United States previous year amounted to $8.7 billion, making it Turkey's fifth-largest export market.

Although the USA tariffs, which were imposed to add pressure on Turkey to release terror-linked American pastor Andrew Brunson, have affected Turkey's exports, global demand for steel is surging and a now weaker lira is making Turkish steel an attractive buy.

Turkey's move follows plans announced last week by the Trump administration to double tariffs on Turkish steel and aluminum.

Prisoners of the (trade) war? The sanctions, she explained, would block "any property or interest in property of both ministers within USA jurisdiction ... and US persons are generally prohibited from engaging in transactions with them".

The feud escalated into an economic battle with global consequences this week as the Turkish currency, the lira, plummeted in value over fears of the country's economic stability stemming from the harsh USA sanctions.

But then Wednesday came along, and the storm clouds seemed to recede. The Turkish central bank has been reluctant to raise rates in response.

In one of the videos circulating online in Turkey, which have been picked up by the country's online news organizations, an unidentified man with four boys kneeling behind him in front of a Turkish flag, addresses the USA leader directly, asking Mr. Trump, "who do you think you are?"

Spreadbetters expected European stocks to open slightly higher, with Britain's FTSE.FTSE seen rising 0.2 percent, Germany's DAX.GDAXI adding 0.1 percent and France's CAC.FCHI gaining 0.15 percent.

Crisis averted - or has it just been deferred? Brunson has lived in Turkey for 23 years, but his case has been taken up as a cause for the USA government.

Turkey borrowed a heck of a lot of money in the post-recession era.

By Thursday mid-morning, the dollar was down more than 2% against the lira to 5.8124.

And then there's debt. "In our own country we have Vestel", said Erdogan.

After hitting a record low of 7.24 this week, the lira has benefited from central bank steps to underpin a currency hit by concerns at President Tayyip Erdogan's influence over monetary policy and a bitter dispute with Washington.

Despite the continuing stalemate and threat of further U.S. sanctions, the value of the Turkish Lira increased slightly on Tuesday, rising 8 percent from Monday's record low, to 6.3 Lira to the dollar.

Even before the mid-August meltdown, though, the lira had fallen 22 per cent against the greenback on the year as of late July. That fueled a relatively high rate of economic growth-7 percent previous year.

Erdogan, by the way, is armed with fresh new powers after his June election victory, and for the past several months he has been purging government and appointing loyalists.

Turkish Finance Minister Berat Albayrak and his Qatari counterpart Ali Sharif al Emadi were also present at the talks in the capital Ankara. He is also charged with supporting the banned Kurdish PKK movement.

On Wednesday, the lira traded at 6.4125 to the US dollar, weakening from a close of 6.3577 a day earlier.

Turkey doubles tariffs on some US imports over economy 'attacks'