U.S. threatens more sanctions in Turkey crisis World News

Lloyd Doyle
August 18, 2018

"Any conversations we have with China to come up with a deal and any conversations we have with Mexico would be seen as a win for the U.S." said Jeffrey Frankel, president at Stuart Frankel & Co in NY. "Our relations with Turkey are not good at this time!"

The Trump administration said it would use a section of USA law that allows for tariffs on national security grounds to impose the increased duties.

Memories of past emerging market crises, such as the Asian financial crisis of 1997 and Turkey's 2001 crisis, came back to haunt investors this week and prompted a wave of selling across emerging market assets as a whole.

But the country's finance minister said Turkish banks are healthy and can withstand the dispute with Washington.

"We've already responded based on the World Trade Organization rules and will continue to do so", Pekcan was quoted as saying by the state-run Anadolu news agency.

On Thursday, Trump tweeted that the United States would "pay nothing" for the release of Brunson, but would punish Ankara if he is not released.

Trump has demanded Brunson's release and has sanctioned Turkish officials and increased tariffs on the country's steel and aluminium in retaliation.

Turkey responded by increasing tariffs on imports from the United States including cars, alcoholic drinks and leaf tobacco - and the lira recovered slightly.

In a separate development on Friday, Mr Trump said that Turkey had "been a problem for a long time", referring to the charges against Mr Brunson as "phoney". We'll see what happens. "We have more that we are planning to do if they don't release him quickly".

Ibrahim Kalin, a spokesperson for Turkish president Recep Tayyip Erdogan, said France and Germany are standing with Turkey in the rift with the US.

Pastor Andrew Brunson, who has lived in Turkey for more than two decades, was detained in 2016 after a government crackdown following a failed coup attempt.

"They are now holding our wonderful Christian Pastor, who I must now ask to represent our country as a great patriot hostage".

On Thursday, US Treasury Secretary Steven Mnuchin suggested during a cabinet meeting that the next spiral of tit-for-tat sanctions was coming soon, deepening the spat that has rattled financial markets. Mr Trump tweeted last week. Mr Brunson denies any involvement.

"Turkey will emerge stronger from these [currency] fluctuations", he said on Thursday as he addressed foreign investors and economists from the US, Europe and Asia via a conference call in a bid to soothe the markets.

Mr Erdogan is angry that the USA has not taken more action against the Gulenist movement and what he said was a failure "to unequivocally condemn" the 2016 coup attempt.

Other reports by Iphone Fresh

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