Economy

Trump doubles steel and aluminium tariffs on Turkey

Trump doubles steel and aluminium tariffs on Turkey

President Trump's discarding of the Iran nuclear deal is a point of contention, as well, as almost half of Turkey's oil imports come from Iran, meaning new sanctions against Iran come back and hurt the Turkish economy as well.

President Donald Trump on Friday tweeted that he had authorized the doubling of steel and aluminum tariffs on Turkey.

Brunson, 50, was arrested in 2016 but was recently released from prison and put under house arrest. Turkey wants Brunson to stand trial. At the beginning of August, the U.S. Treasury Department sanctioned Turkey's ministers of Justice and Interior because of Brunson's detainment.

After inconclusive talks this week on solving the spat, Mr Trump took advantage of Turkey's turmoil to turn the screws on the country.

The president is "not happy with Turkey's decision not to release Pastor [Brunson]", White House press secretary Sarah Sanders said.

"There was some hope that maybe they'd step back from the brink and you'd see a re-establishment of central bank independence", he said.

Meanwhile, Atlantic Council Middle East expert, Aaron Stein, claims Erdogan might have made an error in overestimating his importance to President Trump, adding that if Turkey denied the United States access to the Incirlik military base, with which the us has strategic interests, such a move would invoke the wrath of NATO allies. As of Friday morning, the lira was worth roughly 15 cents.

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

Investors also cited what they say is a lack of intervention from authorities to address the lira's weakness as a key reason for the consecutive daily falls.

A war of sharp words also took place in January, when Turkey launched "Operation Olive Branch" against Kurdish fighters in Afrin.

"Some close the doors and some others open new ones", added Erdogan, who has built closer ties over the last years with countries from Latin America, Africa to Asia.

High-level meetings in Washington between USA and Turkish officials over Brunson ended this week, apparently without a resolution.

Erdogan's claim of a Western political plot against him sparked alarm in investors and prompted an acceleration in the currency sell-off. That sent the lira down even further.

Turkey was hit by a financial shockwave this week as its currency nosedived over concerns about the government's economic policies and a trade dispute with the United States.

President Donald Trump said on Friday he had authorized higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminum and 50 percent one on steel, as tensions mount between the two North Atlantic Treaty Organisation allies over Ankara's detention of an evangelical pastor and other diplomatic issues.

The Turkish president on Friday dismissed such concerns and called for people to defend the currency. This is a national struggle. The lira fell further after Trump's tweet. If this continues, it can cause unpredictable problems to Turkish businesses and banks. "There are so many rumors percolating that large companies are going bankrupt", said analyst Yesilada.

"When it comes to cornering Turkey to extract certain concessions that undermine our sovereign rights, it is a whole another story".