Donald Trump Authorizes More Steel and Aluminum Tariffs on Turkey

Andrew Cummings
August 11, 2018

On Friday, Trump announced that the U.S. will impose a 20 percent duty on aluminum and 50 percent one on steels as tensions mount between the two North Atlantic Treaty Organisation allies over Ankara's imprisonment of USA pastor Andrew Brunson.

U.S. President Donald Trump said on Friday he had authorised higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminium and 50 percent one on steel, as tensions rose between the two North Atlantic Treaty Organisation allies over Ankara's detention of an evangelical pastor and other diplomatic issues.

The currency slid almost 8 percent in relation to the dollar to a record low of 6.59 shortly after Trump announced the increase on metals duties on Twitter. A 20 percent fall in exports would only reduce GDP by 0.1 percentage point or less per year in the 19 countries that use the euro currency.

Officials from Mr Erdogan's office said the two men "expressed pleasure" that relations between Turkey and Russian Federation were progressing "positively" amid joint defence and energy projects. The U.S. was Turkey's biggest export market for steel previous year, though exports have fallen since.

Aluminium will now be 20 per cent and Steel 50 per cent.

Turkey's currency, the Lira, plunged on Friday sparking concerns about the country's financial stability as investors anxious about Turkey's president's economic policies and a dispute with the U.S.

'If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks.

The Turkish lira dropped as much as 18 per cent at one point after Mr Trump's announcement - the biggest one-day fall since a 2001 financial crisis in the country.

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

Relations are also tense because of new U.S. The U.S. responded by slapping sanctions on Turkey and threatening more.

They are also concerned over the central bank's ability to rein in persistent double-digit inflation with the president repeatedly calling for lower rates.

"The lira has been weakening since and it's coming to a head today", Wilson said, adding the downward spiral will continue if Turkey insists on a soft landing. 'On some days, I end the day with a loss'. Mr. Trump tweeted Friday morning. His comments did nothing to shore up the lira currency.

The Lira touched a record low of 5.44 against the Dollar, weakening some 2.5 percent from Wednesday's close. Further downside for the lira and weakness in domestic bank bonds could accelerate the withdrawal of wholesale funding in an economy which needs to attract overseas capital.

Turkey also is seeking the release of a Turkish banker, Mehmet Hakan Atilla, who was convicted in US federal court in May on sanctions-busting charges related to the purchase of Iranian oil.

Erdogan said Turkey is not afraid of outside "threats".

In response to the economic problems, Finance and Treasury Minister Berat Albayrak, who is Erdogan's son-in-law, outlined a "new economic model" on Friday.

Turkey remains at loggerheads with the United States over the detention for the last two years of American pastor Andrew Brunson and a host of other issues.

A diplomatic source, however, familiar with talks of Turkish deputy foreign minister Sedat Onal in Washington this week, told The National that exchanging Mr Brunson for Mr Atilla is not on the table from the United States side.

Other reports by iNewsToday