US Condemns Turkey's New 'Regrettable' Tariffs

Lloyd Doyle
August 17, 2018

"President Trump's imposition of tariffs on steel and aluminum is about protecting American national security", the spokesperson said.

The lira, which has fallen nearly 40% against the dollar this year, rose 4.5% to 5.7TL on Thursday afternoon.

Following the announcement, the lira firmed briefly to 5.8699 from 6.04 to the US dollar, but later eased back to 6.0200 at 1538 GMT.

Optimism about better relations with the European Union after a Turkish court released two Greek soldiers pending trial and a banking watchdog's step to limit foreign exchange swap transactions have also helped the lira.

Ankara stood by Doha after Saudi Arabia and other Arab states severed diplomatic, trade and travel ties with Qatar previous year, accusing it of financing terrorism, a charge Doha denies. "Turkish-Qatari relations are based on solid foundations of true friendship and solidarity". "The fundamentals of the Turkish economy are robust and Turkey will emerge stronger from this process", Ibrahim Kalin wrote.

A slide in the value of the Turkish lira turned into a rout last Friday when US President Donald Trump tweeted that his administration was doubling aluminium and steel tariffs for Turkey.

Trump has repeatedly asked for Brunson's release, while Ankara said the decision was up to the court.

An originally political battle between Ankara and Washington over an American pastor jailed in Turkey has turned into a full-scale economic and diplomatic confrontation between the two North Atlantic Treaty Organisation allies. In response, Erdogan has called for a boycott of USA electrical goods while Ankara has sharply hiked tariffs on some U.S. goods.


Turkish Vice President Fuat Oktay said that the tariff hikes were ordered "within the framework of reciprocity in retaliation for the conscious attacks on our economy by the USA administration".

Turkey and Qatar have become close economic and political partners.

The flailing Turkish lira rebounded slightly on Thursday, on the heels of Qatar's announcement that it would earmark $15 billion for deposits and investment projects to be made in Turkey.

Moves by the central bank to ensure Turkish banks have liquidity and a planned conference call by Turkish Finance Minister Berat Albayrak, who is Erdogan´s son-in-law on Thursday have gone some way to giving reassurance to investors.

"I think the dollar is strengthening as a result of diverging monetary policies", said Oliver Pursche, Chief Market Strategist Of Bruderman Brothers In New York.

The lira has lost almost 40 percent of its value against the dollar this year, driven by worries over Erdogan's growing influence on the economy and his refusal to raise interest rates despite high inflation.

The US doubled tariffs last week over Turkey's refusal to extradite a US pastor who is imprisoned there.

In London, the FTSE 100 was down 0.4 per cent by Wednesday morning.

Other reports by Iphone Fresh

Discuss This Article

FOLLOW OUR NEWSPAPER