Trump doubles metal tariffs on Turkey as lira falls by 20%

Turkish US talks end at State Department

Turkey's lira hit a new record low against the USA dollar in early trade on Friday, as concerns over a widening rift with the United States persisted after a Turkish delegation returned from talks in Washington with no apparent solutions to the crisis.

Aluminium will now be 20 per cent and Steel 50 per cent.

Turkey remains at loggerheads with the United States in one of the worst spats between the two North Atlantic Treaty Organisation allies in years over the detention for the last two years of American pastor Andrew Brunson and a host of other issues.

Doubling the tariffs to 20 percent for aluminum and 50 percent for steel would magnify the impact of the trade restrictions.

The lira dropped 11 percent against the USA dollar Friday as Turkish President Recep Erdogan warned of a global economic war against his country.

The lira was buffeted by a diplomatic row between Ankara and Washington, with Turkish President Tayyip Erdogan's attempts to talk up the currency having exactly the opposite effect.

The lira plunged to as low as 6 against the United States dollar on Friday, a day after a Turkish delegation returned from talks in Washington with no apparent solutions to their simmering crisis.

"In this process, we will finely work every single detail as a wide spectrum including all national and global stakeholders", he said in the first part of his speech, referring to Turkey's Medium-Term Economic Plan (OVP), which will soon be renamed.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".


Investors are concerned with Erdogan's firm grip on Turkish monetary policy.

The Lira touched a historic low versus the U.S dollar. He is a self described "enemy of interest rates" and wants banks to lend cheap credit to fuel growth, something experts are anxious could seriously affect the economy. But since adopting increased powers, Erdogan appears to have greater control over the bank as well.

The dollar rose as exposure to Turkey could impact European banks and spark a domino effect throughout Europe as people begin to pull out of those banks and into the US, said Gregan Anderson, macroeconomic strategist at brokerage Bulltick LLC.

He added that skilled human resources and a strong society will support the three main phases of Turkey's new economic perspective.

Treasury and Finance Minister Berat Albayrak - who is Erdogan's son-in-law - was scheduled later on Friday to outline a "new economic model".

Turkish companies have borrowed roughly US$300 billion in foreign currency, and now have to repay it in devalued Turkish lira.

Foreign investors could be spooked and try to pull their money out, reinforcing the currency drop and potentially leading to financial instability.

An immediate "aggressive interest rate hike" was also needed, Mr Grier said, with something of the order of 1,000 basis points as seen in Argentina this year. "On some days, I end the day with a loss".

Related News:



Most liked

CDC: 4 cases of West Nile virus in Minnesota
Symptoms include severe headaches, fever, vomiting and diarrhea, with the agency recommending to seek immediate medical attention. Cases generally tend to spike during the summer and fall months, between June and September, when activity is the most common.

Kurt Zouma Staying Put In London As Everton Look To Seal Loan
L'Equipe are an extremely reliable source, and the fact that they are reporting this indicates the deal is close to completion. With his prospects unlikely to improve much at Chelsea this season, a move away from the Bridge makes sense.

Killer whale still carrying her dead calf after 16 days
NOAA says on Facebook that the team will decide next whether to feed the free-swimming whale live salmon from a boat. She returned to her family of whales in Canada later that year and in 2013 was seen with her new calf.

Katie Couric Posts No-Makeup Selfie To Buck The Snapchat Dysmorphia Trend
And that can trigger a preoccupation with appearance that leads to risky efforts to hide perceived flaws, researchers suggest. Requests for hair transplants and eyelid surgical procedures have also increased as people seek the flawless selfie.

Novak Djokovic, Rafael Nadal win in Toronto
Djokovic, a four-time Rogers Cup champion, faded late on a warm, breezy afternoon at Aviva Centre on the York University campus. "I was really not focusing on winning or losing, just on starting to play good tennis and start building the right habits".

Yerry Mina relishing Everton challenge
Manchester United had expected to sign Mina after submitting a fresh £35million bid for the Colombia defender earlier this week. Everton have won the race for his signature with the attacking midfielder signing a four-year contract.

Russia Considers Retaliation For 'Categorically Unacceptable' New U.S. Sanctions
Paul's meeting with Putin will allow Trump to communicate this uncomfortable decision with some diplomatic cordiality. British officials had declared that Russian Federation was to blame for the attempted poisoning of Sergei V.

Courtney Smith Says OSU Never Contacted Her About Domestic Abuse Allegations
It is unclear whether or not OSU policy requires a school representative to reach out to the alleged victim in a case like this. Late Sunday night, the university said in a statement that its "investigation is expected to be completed within 14 days".

José Mourinho does not expect any Manchester United deadline-day signings
However, there was no indication that it was a deliberate tactic on his part or that he was being economical with the truth. I was told that during pre-season it looked like I was saying something absolutely out of order, something insane .

Magnitude 5.9 natural disaster hits Lombok, no tsunami alert issued
Indonesia's geological agency said the latest big tremor had a magnitude of 6-point-2 and occured at a depth of 12 kilometers. He says, "People are always saying they need water and tarps".

Miami Dolphins Players Kneel For Anthem During NFL Preseason Opener
The Giants opened their preseason at home against the Cleveland Browns on Thursday, and Big Blue defensive lineman A.J. Eagles defensive end Chris Long had his arm around Jenkins in a show of solidarity.

'My time was short' - Australian golfer Jarrod Lyle dead at 36
He made an emotional comeback at the 2013 Australian Masters in Melbourne before using a medical exemption to play on the U.S. Lyle was diagnosed with leukaemia as a teenager and suffered a relapse in 2012 - he chose to halt all treatment last week.

Hamas and Israel agree on truce to end Gaza flare-up
According to the Jerusalem Post , more than 200 rockets and mortars were launched since August 8, leaving 28 Israelis injured. Israel's military said the five-storey building was used by Hamas's "interior security forces for military purposes".

Brad Pitt Fires Back at Angelina Jolie's Child Support Request
U.S. actor Brad Pitt has rebutted claims made by his estranged wife Angelina Jolie that he has failed to support their children. Today, "Extra" obtained Brad's response.

Apple says it's monitoring Infowars app
This response would be bad enough if Twitter didn't ban accounts for far less across seemingly arbitrary lines ( which they do ). The Twitter CEO is no stranger to criticism over his company's mishandling of harassment and hate speech on his service .