Lira crash: Trump orders doubling of customs duties from Turkey

In the diplomatic crisis, US President Donald Trump raises the pressure. The Turkish government accused Trump of jeopardizing relations as allies.

Lira crash: Trump orders doubling of customs duties from Turkey

US president Donald Trump has announced that he can double tariffs on steel and aluminium from Turkey. A corresponding arrangement he had just taken, tweeted Trump. The tariffs on aluminium would rise to 20 percent, with steel at 50 percent. The announcement does not indicate when duties should enter into force.

I have just authorized a doubling of tariffs on steel and aluminum with respect to Turkey as ir currency, 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!

— Donald J. Trump (@realDonaldTrump) August 10, 2018

A spokesman for Turkish foreign Ministry accused Trump of jeopardizing relations as allies. "The US should know that y will not achieve results with such sanctions and pressure." Turkey is always on side that "solves problems through diplomacy, dialogue, goodwill and mutual understanding." All steps against Turkey will be followed by a "necessary answer".

Turkish Trade minister Ruhsar Pace said that Turkey was "deeply disappointed" by decision. She called on Trump to return to negotiations. In a separate communication from Department of Commerce it was said that customs duties violated rules of World Trade Organisation (WTO). The ministry will defend rights of Turkish producers at WTO and or international platforms.

Controversy over US pastor Andrew Brunson

The US president also wrote: "Our relations with Turkey are not good at moment." It apparently refers to diplomatic dispute between United States and Turkey for arrest of US clergyman Andrew Brunson by Turkish authorities. They accuse Brunson of having supported coup attempt in summer of 2016.

After pastor had been in custody for a long time without diplomatic negotiations on his case, Trump intervened – and imposed sanctions on NATO's partner Turkey. These were aimed at Turkish Interior Minister Suleiman Soylu and Justice Minister Abdülhamit Gül. United States ministers ' assets should be frozen, and US citizens must not do business with m.

Turkey reacted a few days ago and also imposed sanctions on two US ministers. Turkish President Recep Tayyip Erdoğan warned in early August that conflict could continue to escalate. Turkey does not want to be part of a "game" with losers on both sides, president said.

On Friday, Erdoğan tried to reassure his followers. He explained decline of lira with an "economic war" in which his country is located. In afternoon, he called on all Turkish Turks to exchange currency for lira in support of currency. "Exchange euro, exchange dollars and gold you have under your pillows in our banks in lira. This is a national battle, "Erdoğan said. The government-loyal Turkish newspaper Daily Sabah reported that Turkish president was on phone with his Russian colleague, Vladimir Putin, for new duties. Meanwhile, Lirakurs continued to fall.

Government wants to improve confidence in lira

Even after US president's tweet on Friday afternoon, rate of lira fell. At same time, Turkish finance minister, Berat Albayrak, gave a speech in which he assured country's central bank full independence. This is crucial for economy, said Albayrak, who is Erdoğan's son-in-law.

In an almost one-hour speech, Albayrak continued to say that Turkey had taken a very cautious opinion on monetary policy and central bank. The government will pay more attention to budgetary discipline and address structural reforms. The Turkish Government supports an ' independent monetary policy '. They wanted to improve ir confidence in lira and effectively fight inflation. How exactly government wants to achieve this has not emerged from speech Albayraks.

World trade-why are re trade conflicts? The trade dispute of world's largest economies has begun: US is charging import duties on goods from China. The video explains triggers and possible consequences. © Photo: Liza Arbeiter

Date Of Update: 11 August 2018, 12:00

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