USA to Increase Tariffs on Turkish Aluminum, Steel

  • USA to Increase Tariffs on Turkish Aluminum, Steel

USA to Increase Tariffs on Turkish Aluminum, Steel

President Donald Trump said in a tweet Friday that he would hit Turkey with additional tariffs, as their national currency continues to drop.

In a tweet, Foreign Ministry Spokesman Hami Aksoy said President Donald Trump's decision, which also violates the rules of World Trade Organization, "cannot be associated with seriousness expected from a state".

Turkey is now under a 25 percent tariff on imported steel and 10 percent on aluminum, which went into effect in March. "Aluminum will now be 20% and Steel 50%". That is two times the level announced earlier this year in March.

Diplomatic relations between the United States and Turkey have declined since the failed 2016 Turkish coup.

President Trump seems to think that Turkey has been trying to take advantage of us by having an economic crisis that's sent their currency tumbling.so he's taken steps to make it tumble even more?

It had been billed as a state visit that would patch up frayed ties between two North Atlantic Treaty Organisation allies and potentially serve as a platform for Turkey to make overtures toward Europe after months of strained relations.

The currency has fallen more than 35 percent this year after losing almost a quarter of its value in 2017.

European and emerging-market equities bore the brunt of selling, with losses of more than 1 percent after the USA escalated a diplomatic row that tipped Turkey's economy deeper into crisis.

Zafer Tulus, whose family has owned a butcher shop for more than 200 years, has been forced to close down the business.

It argued that the country accounted for less than 2 percent of group revenues and a 10 percent fall in the lira would affect its CET1 ratio - capital that must be set aside as a buffer against financial shocks - by only around 2 basis points. The weakened currency's value has helped increase inflation and anxious worldwide investors.

The defiant tone and war rhetoric only hurt the lira more, before Erdogan's finance chief and son-in-law, Berat Albayrak, tried to ease investor concerns during a conference, saying the government would safeguard the independence of the central bank.

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

The president's characteristic defiance in the face of a shaky economy has further unnerved investors.

Mr Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fuelling economic growth.

A weaker lira means that the taxes will be less impactful.

Stocks sold off around the world, with US equities erasing what would've been a sixth weekly gain as Turkey's economic crisis deepened.

Last week, he called on Turks to convert their foreign currency and gold into Turkish lira to help the currency.

A Turkish man waits to change his USA dollars with Turkish liras inside a currency exchange shop in Ankara, Aug. 10, 2018.

Treasury and Finance Minister Berat Albayrak has vowed to execute Turkey's new economic model together with "all national and global stakeholders", while stressing that a "decisive" approach and the Central Bank's independence would be maintained.

"He spoke today sounding very combative and defiant instead of possibly offering a bit of fig leaf to the US", said Franulovich. Trump, who had secured the release of a Turkish woman activist being held by Israel and just days earlier he had been exchanging fist bumps with Erdogan at a North Atlantic Treaty Organisation summit in Brussels, took it as a personal affront. The NATO allies are at odds over the detention in Turkey of United States evangelical pastor Andrew Brunson on terrorism charges.