Donald Trump announces 'doubling' of tariffs on steel, aluminum from Turkey

Euro vs US Dollar Chart- 5min

Euro vs US Dollar Chart- 5min

Turkey entered a full-blown financial meltdown on Friday, after President Recep Tayyip Erdogan declared his refusal to bow to USA political demands and market pressures.

The sudden drop came when Donald Trump announced on Twitter he was doubling United States import tariffs on Turkish steel and aluminium.

Here, the Americans might have moved too soon, not realising that in Turkey, house arrest would nearly certainly lead to dropping charges. For one, the 2016 detention of an American evangelical pastor named Andrew Brunson, has aggravated tensions. All week, the lira has been under pressure, which accelerated with the failure of diplomatic talks in Washington this week.

Last week, the U.S.

This suggests he is sticking to his nationalist message, for now at least, and may still resist delivering the hard measures Turkey desperately needs.

Trump's announcement came less than an hour after Turkish President Tayyip Erdogan urged Turks to help defend the country against what he called economic war against the country.

The lira dropped by over 11 percent in value in one day on Friday morning to almost six lira per dollar.

"We will not lose the economic war", he said.

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Some economists were unimpressed by the government's handling of the crisis.

"Some countries have engaged in behaviour that protects coup plotters and knows no laws or justice", he said. "Relations with countries who behave like this have reached a point beyond salvaging". Overnight it had retreated to its lowest since November 2016 on threats of new USA sanctions, weakening beyond the psychologically important 65-per-dollar threshold. That drained investor confidence in the central bank, leading to a further sell-off of the currency.

"It seems that the Erdogan administration may now have missed its chance to regain any central bank credibility and even when rates do rise, it is likely to be a case of too little too late".

Adding to Turkey's fiscal woes, new pension and spending increases announced by president Erdogan in the lead-up to his recent election win have further weakened the outlook for Turkey's public finances.

The Turkish lira hit an all-time low against the dollar on Friday, and there are growing concerns that the country's economic troubles could spread to the eurozone.

President Tayyip Erdogan told Turks to exchange gold and dollars into lira as the currency tumbled after President Donald Trump doubled USA tariffs on metals imports from Turkey. Trump and Vice President Mike Pence threatened on July 26 to impose sanctions on Turkey if the pastor is not set free and allowed to return to the United States. Companies were "being unfairly punished for participating in global trade", she said. Speaking in the northeastern province of Gumushane, Erdogan said, "Apparently, those who believe they can force us to capitulate don't know [our] people at all". Erdogan appealed to a crowd in the city of Bayburt to exchange dollars and gold for Turkish lira to prop up the plunging currency. Lindsey GrahamLindsey Olin GrahamGOP lawmaker: Every white suburban district in the country will be a swing district this year The Hill's Morning Report - Trump to GOP: I will carry you GOP senator: "Real likelihood" Dems win the House "by 10 or 12 more seats than they need" MORE (R-S.C.) tweeted Friday. "It will inevitably push Turkey towards the Russian and Iranian orbit and I think even raises questions over Turkey's North Atlantic Treaty Organisation membership". "There are so many rumors percolating that large companies are going bankrupt", said analyst Yesilada.

Hordijk said in an email: "President Erdogan is the elephant in the room ..."

The lira fell as much as 18 per cent against the US dollar in its worst day since Turkey's financial crisis of 2001.

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