Trump doubles tariffs on Turkey

Trump doubles tariffs on Turkey

Trump doubles tariffs on Turkey

He also said it was a pity that Washington chose Brunson over Turkey, its partner in North Atlantic Treaty Organisation, and in an opinion piece published in the New York Times, he warned the U.S. that Ankara had other alternatives as allies.

Watch the lira trade in real time here.

The ailing Turkish lira, which had already lost one third of its value this year largely over worries about Erdogan's wider control of the economy, crashed further to a fresh record low, at one point losing 18 percent, its biggest fall since 2001.

On June 21, Turkey's retaliatory tariffs went into effect on 4 to 70 percent of more than $1 billion worth of US goods. But those talks on Thursday showed no signs of breakthrough.

U.S. -Turkish tensions began to escalate last week, with Trump targeting two Turkish ministers with sanctions over the detention of U.S. pastor Andrew Brunson.

Turkey then retaliated by slapping import duties on $1.78 billion worth of US products, including coal, paper, nuts, whiskey, autos, machinery and petrochemicals.

Turkish President Recep Tayyip Erdogan has lashed out against a shadowy worldwide "interest rate lobby" which he suggested was "campaigning" to harm Turkey's economy, after the lira fell more than 14 percent overnight.

U.S. President Donald Trump and Turkish President Tayyip Erdogan gesture as they talk at the start of the North Atlantic Treaty Organisation summit in Brussels, Belgium July 11, 2018. Brunson was among many foreign nationals detained by Turkish President Erdogan in the wake of a failed 2016 coup attempt.

The recent sell-off in the lira has been fuelled by investor concerns over Erdogan's grip on monetary policy under a new powerful executive presidency and the ongoing row with the United States.

'However, I say it once again from here.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks". "This is a national, domestic battle", he told a crowd in the northeastern city of Bayburt, according to Reuters.

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The meetings came as Turkey seeks to stanch an economic meltdown amid fallout from US sanctions imposed last week over the continued detention of the pastor, Andrew Brunson, who was jailed on espionage and terrorism suspicions more than two years ago and recently released to house arrest.

Meanwhile, concerns were intensified on August 10 by a report in the Financial Times that the supervisory wing of the European Central Bank (ECB) had over the last weeks began to look more closely at eurozone lenders' exposure to Turkey.

He also said increasing production, exports and employment was the best response to the country's challenges.

The lira tumbled 13% in one day, to 6.51 per United States dollar, a massive move for a currency that will make the Turkish poorer and further shake global investors' confidence in the country.

The currency has fallen 66 per cent since the start of the year, pushing up the cost of goods for Turkish people and shaking worldwide investors' confidence in the country.

Relations between the United States and Turkey have not been helped by Turkey jailing an American citizen for an alleged attempted coup in 2016.

The United States has increasingly used economic sanctions against foes such as Iran or North Korea but it is highly unusual for an administration to impose import tariffs over political or judicial issues with other countries.

The Washington Post newspaper said the USA administration was doing everything to strengthen its hand in the Brunson case, but the decision would do nothing but cause more problems for bilateral relations. 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.

"These are the bullets, cannonballs and missiles of an economic war waged against our country", he said. But experts argue that the central bank should instead raise interest rates to ease inflation and to support the currency.

What's happening to Turkey's currency right now?

Finance Minister Berat Albayrak is due to announce the government's latest plan for the economy at a press conference at 11:30 GMT.

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