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Trump
doubles metal tariffs on Turkey as lira falls by 20%
BBC,
10
August, 2018
President
Donald Trump has doubled US tariffs on Turkish steel and aluminium,
as the precipitous fall of the Turkish lira accelerates.
In
a tweet, Mr Trump said the currency was weak against "our very
strong dollar", adding that "US relations with Turkey are
not good at this time".
Turkish
President Recep Tayyip Erdogan said in a speech that the drop was
part of a "campaign" led by foreign powers.
Turkey
also warned it would retaliate against the US tariffs move.
"The
United States should know that the only result that such sanctions
and pressure will bring... will be harming our relationship as
allies," the Turkish foreign ministry said in a statement.
The
two Nato members are at odds on a range of issues - how to fight the
Islamic State group, Ankara's plans to buy Russian missile defence
systems and how to punish the alleged plotters of a failed coup in
Turkey in 2016.
Most
recently, President Trump issued sanctions on top Turkish officials
over the ongoing detention of a US pastor who is facing terror and
espionage charges in Turkey.
What
is happening in Turkey?
In
the past 24 hours, the lira has lost around 20% of its value. It had
already fallen more than 40% in the past year.
In
a televised speech on Friday, President Erdogan called on citizens to
exchange foreign currency and gold for lira, calling it an "economic
war".
"This
is a domestic and national struggle," he said, as the lira
continued to fall.
Mr
Erdogan addressed the currency decline earlier on Friday
In
a veiled attack on the US he added: "Some countries have engaged
in behaviour that protects coup plotters and knows no laws or
justice."
"Relations
with countries who behave like this have reached a point beyond
salvaging."
I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!
After
he spoke, Mr Trump tweeted that aluminium tariffs "with respect
to Turkey" would be raised to 20% and steel to 50%.
The
reaction from global currency markets to the rift caused the euro to
slump to a 13-month low and pushed the dollar to a one-year high.
Turks
in Ankara examine the fluctuating exchange rate at a currency
exchange shop
The
Turkish trade ministry responded that the additional tariffs were
against the rules of the World Trade Organization.
"Turkey
expects other member countries to abide by international rules,"
the ministry said in a statement, adding that the US remained an
important trade partner.....
What the BBC would have us think is behind the crisis
Why
are US-Turkish relations strained?
Friday's
developments are the latest manifestation of growing differences
between the two sides on a number of issues.
Earlier
this month, the White House hit Turkey's justice and interior
ministers with sanctions over the country's ongoing detention of an
American pastor.
Turkey
is accusing Andrew Brunson - who operates a small church in Izmir -
of having links to the outlawed Kurdistan Workers Party and the
Gulenist movement, which Turkey blames for the failed coup.
He
had been held in prison for almost two years, but was recently moved
to house arrest due to health issues.
American
evangelicals have rallied to his cause, triggering the recent
reaction from the Trump White House.
Turkish
officials have been in Washington this week for talks on his release
but these seemed to fall apart in recent days.
Last
month, Mr Trump took to Twitter to threaten sanctions on Turkey if Mr
Brunson was not released.
The United States will impose large sanctions on Turkey for their long time detainment of Pastor Andrew Brunson, a great Christian, family man and wonderful human being. He is suffering greatly. This innocent man of faith should be released immediately!
The
US has also been refusing to extradite Fethullah Gulen, a cleric and
former Erdogan ally who has been living in the US state of
Pennsylvania. Turkey accuses him of leading the attempted "Gulenist"
coup.
In
addition, Turkish politicians are furious at American military
support for Kurdish militia fighting the so-called Islamic State in
northern Syria.
Mr
Trump's rejection of the Iran nuclear deal has also been a point of
contention between the two nations.
Turkey
has urged the US to extradite Muslim cleric Fethullah Gulen
Half
of Turkey's oil imports come from Iran. Therefore the re-imposition
of US sanctions against Iran has been seen by economists as likely to
harm the Turkish economy.
Then
there is the Incirlik Air Base, which Nato has used extensively in
the fight against IS.
There
has been some domestic pressure on Mr Erdogan to close the base, and
last week a group of pro-government Turkish lawyers filed charges
against US soldiers stationed there.
They
request that a judge temporarily block all flights out of the base,
and that arrest warrants be issued for the group of American
officers, who they claim played a role in the coup attempt.
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