Trump doubles steel and aluminium tariffs on Turkey as lira nosedives

Devlet Bahçel urged Turkey not to release the detained American pastor

Devlet Bahçel urged Turkey not to release the detained American pastor

The lira tumbled about 10 per cent on Friday to another record low as investors worry about Erdogan's unorthodox economic policies and U.S. sanctions. Turkish aluminum will now be taxed at 50% and steel at 20%, essentially pricing Turkish metals out of the USA markets. 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. "Turkey has been trending towards authoritarianism & becoming more anti-American". (The last substantial hike was in January 2018; before then, it was in late 2013, when Turkey was dealing with the end of the U.S. Federal Reserve's quantitative easing program.) The country could also place controls on capital, but those can hamper private sector activity and won't be easy considering the government's relative inability to totally control private capital.

A delegation of Turkish officials held discussions with their counterparts in Washington this week but there was no sign of a breakthrough.

The lira "is falling so fast that a parachute is the first thing that comes to mind to prevent the lira smashing into the ground", Bart Hordijk, a market analyst at Monex Europe, told Business Insider.

But it's unclear exactly how Turkey is threatening national security.

It all started with Turkey's own mistakes - or, more accurately, with Turkish President Recep Tayyip Erdogan's.

Since then Donald Trump and his Vice President Mike Pence have repeatedly demanded his release as Ankara insists the decision is up to the courts. "Turkey is an important strategic partner militarily and economically".

"Some countries have engaged in behavior that protects coup plotters and knows no laws or justice", he said. He added that the country will continue to enjoy good economic relations with several major nations. The US has refused to extradite Fethullah Gulen, who lives in Pennsylvania.

Erdogan's claim of a Western political plot against him sparked alarm in investors and prompted an acceleration in the currency sell-off. Erdogan's speech caused the value of the lira to drop even further.

The lira, which has lost a third of its value this year, fell on his comments and was trading at around 6.05 to the dollar after he spoke, almost 9 percent weaker on the day.

The Turkish president added that North Atlantic Treaty Organisation could lose an ally. This is a national struggle.

"We will not lose the economic war", state-run TRT Haber TV quoted Erdogan as saying, according to Agence France-Presse. Inflation increased 16 percent in July, and Erdogan has insisted that interest rates not increase.

The Yapi Kredi stake is valued on the bank's books at $2.5 billion and is now worth $1.5 billion, Credit Suisse said.

In response, Mr Trump sanction two Turkish ministers and on Friday he announced he was double the tariffs on steel and aluminium imports from Turkey.

"There are historical and geopolitical reasons for limits with relations with Moscow, limits I think we've reached", said global relations expert Soli Ozel of Istanbul's Kadir Has University.

Erdogan urged Washington to give up the misguided notion that bilateral relations could be "asymmetrical" and realise that Turkey had alternatives "before it is too late".

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