Trump doubles steel and aluminium tariffs on Turkey

The euro has dropped today after the Turkish lira ad Russian rouble plummeted

The euro has dropped today after the Turkish lira ad Russian rouble plummeted

The U.S.is the biggest importer of Turkish steel, and on Friday President Donald Trump said he will authorize higher tariffs on steel and aluminum from Turkey, a North Atlantic Treaty Organisation ally.

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.

The Turkish lira fell to a fresh record low of 5.588 after a meeting on Thursday between a Turkish delegation and USA officials in Washington yielded no apparent solution to a diplomatic rift over the detention in Turkey of a US pastor.

All eyes will be on the lira when foreign exchange markets reopen on Monday after the weekend pause.

The United States and Japan on Thursday began what the two sides call "free, fair and reciprocal" negotiations on trade, with the discussions due to continue on Friday.

President Tayyip Erdogan denied on Saturday that Turkey is in a currency crisis, dismissing a plunge in the lira as "fluctuations" which have nothing to do with economic fundamentals. "We've stood with neighbours before, and will again now", he warned.

Erdogan said Turkey would be looking to form alternative economic alliances with "Iran, to Russian Federation, to China and some European countries".

"Our response to those who wage a trade war against the whole world and include our country in that would be heading towards new markets and new alliances", Mr. Erdogan said.




"Some close the doors and some others open new ones", added Erdogan, who has built closer ties over the last years with countries from Latin America, Africa to Asia.

Erdogan promised supporters that Turkey was taking the necessary precautions to protect its economy but added "the most important thing is breaking the hands firing these weapons".

"You dare to sacrifice 81-million Turkey for a priest who is linked to terror groups?", he stressed. "What happened? Immediately, we have imposed the same sanctions on their ministers", Mr. Erdogan said.

In Trabzon, Erdogan confirmed media reports that Washington gave Onal's delegation a deadline for the release of Brunson.

The lira's crash was sparked by a disagreement with the United States over the detention of an American pastor in Turkey, which has even brought up questions over the future partnership between Washington and Ankara.

Erdogan, who has called himself the "enemy of interest rates", wants cheap credit from banks to fuel growth, but investors fear the economy is overheating and could be set for a hard landing. As a result he's pushed Turkey's central bank to keep interest rates low, threatening its independence and preventing it from shoring up the lira.

"Unless the United States starts respecting Turkey's sovereignty and proves that it understands the dangers our nation faces, our partnership could be in jeopardy", he wrote.

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