Published: Sun, August 12, 2018
Business | By Kate Woods

Trump doubles steel & aluminum tariffs on Turkey

Trump doubles steel & aluminum tariffs on Turkey

Turkey's Trade Ministry said Friday additional steel and aluminum tariffs announced by U.S. President Donald Trump violated the rules of the World Trade Organization (WTO) amid mounting tension between the two North Atlantic Treaty Organisation allies.

Reverberations spread through global markets, with European stock markets especially hit as investors took fright over banks' exposure to Turkey.

The penalties also bar any USA transactions with the two men.

The ECB is concerned that the contagion will result in Turkish borrowers defaulting on foreign currency loans, which make up about 40 percent of the Turkish banking sector's assets, according to the Financial Times.

"Before it is too late, Washington must give up the misguided notion that our relationship can be asymmetrical and come to terms with the fact that Turkey has alternatives", he said.

There are a range of other issues that have sown discord between the two members of the North Atlantic Treaty Organization (NATO), such as the USA military presence in Syria, Turkey's purchase of Russian S-400 missile systems, and the US move to reimpose sanctions on Iran, the main supplier of oil and gas to Turkey. Financial upheaval there risks further destabilizing an already volatile region.

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The Turkish lira hit a record low on August 10 after President Donald Trump authorized the doubling of tariffs on imports of Turkey's steel and aluminum.

Turkish aluminum will now be taxed at 50% and steel at 20%, essentially pricing Turkish metals out of the US markets.

Jackson said the weakness of the lira would boost competitiveness for Turkey's exports, but the tariffs on steel and aluminum would offset that.

Calling on the U.S., Erdogan said: "It is a shame. Don't heed them. Don't forget, if they have their dollars, we have our people, our God", Erdogan said. On Friday, he said the country had to take steps in answer "to those who have waged an economic war against us". As of Friday morning, the lira was worth roughly 15 cents.

After nearly 20 months in a Turkish jail, Brunson was moved to house arrest in July by a court.

The diplomatic dispute with the US was one of the triggers that turned market jitters into a full-blown rout this past week.

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Erdogan downplayed the currency crisis in a speech on Friday, advising Turks not to be anxious over exchange rate fluctuations.

In the New York Times article, Erdogan said: "Attempting to force my government to intervene in the judicial process is not in line with our Constitution or our shared democratic values". Turkey answered the March tariff announcement by placing its own tariffs on $267 million of USA goods.

"Aksoy says Turkey "always backs the resolution of issues through diplomacy, dialogue, goodwill and mutual understanding", but would retaliate for Trump's decision".

Ankara blames for an attempted coup in 2016.

A Turkish delegation met with officials from the departments of State and Treasury earlier this week as both sides sought a way out of the rising tensions.

"This could be the most expensive pastor in world history", Sekulow said, referring to the harm being done to Turkey's economy.

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