United States to Increase Tariffs on Turkish Aluminum, Steel

Trump Relations with Turkey are not good

At midday: Turkey turmoil rocks world stock markets

The United States has turned its back on its North Atlantic Treaty Organisation ally Turkey over a Christian American pastor and such treatment has annoyed and upset Ankara, Turkish President Tayyip Erdogan said on Saturday.

President Trump's sanctions saw the Turkish lira plummet to a unsafe low, causing a financial crisis that has also threatened to destroy Europe after it triggered concerns with banks in Spain, Italy and France. On Friday, he said the country had to take steps in answer "to those who have waged an economic war against us".

In a tweet, he said he was imposing duties of 20 per cent on Turkish aluminium and 50 per cent on steel.

He also condemned as "unacceptable, irrational and ultimately detrimental", the sanctions imposed by the United States on several Turkish cabinet members over the Brunson issue.

The president, who says a shadowy "interest rate lobby" and Western credit ratings agencies are attempting to bring down Turkey's economy, appealed to his countrymen's patriotism.

Without naming countries, Mr Erdogan said supporters of a failed military coup two years ago, which Ankara said was organised by a US-based Muslim cleric, were attacking Turkey in new ways since his re-election two months ago.

"Also completely underestimated is Turkey's capacity to effectively shut down everything that happens in Brussels if they want to, because Brussels works on consensus and nothing, literally nothing happens without consensus", he said.

Markets InsiderAs a result of the ensuing panic, the dollar strengthened sharply against major currencies as global investors sought a safe-haven, something that runs directly against Trump's professed efforts to boost United States manufacturing production and exports.

President Donald Trump said in a tweet Friday that he would hit Turkey with additional tariffs, as their national currency continues to drop.

Many Turkish lenders are already in talks to restructure billions of dollars of loans, a process that may end up forcing them to accept losses. "Don't heed them. Don't forget, if they have their dollars, we have our people, our God", Erdogan said.

His chief advisor and spokesperson Ibrahim Kalin pointed out more blatantly that the United States might lose Turkey for good.

BBVA, owner of nearly 50 per cent of Istanbul-based Turkiye Garanti Bankasi AS, fell more than 5 per cent. Garanti and its local peers face a wave of corporate defaults and loan restructurings as the lira's collapse makes it harder for Turkish companies to repay the dollars they have borrowed in recent years.

"The US runs the risk of losing Turkey as a whole".

"Before it is too late, Washington must give up the misguided notion that our relationship can be asymmetrical and come to terms with the fact that Turkey has alternatives", he said. "The entire Turkish public is against USA policies that disregard Turkey's legitimate security demands", Kalin, also a spokesperson for Erdogan, wrote for the pro-government Daily Sabah newspaper.

President Trump's discarding of the Iran nuclear deal is a point of contention, as well, as almost half of Turkey's oil imports come from Iran, meaning new sanctions against Iran come back and hurt the Turkish economy as well.

"The US and Turkey are breaking up".

Turkey's economy is only the 17th largest in the world, but its problems are worsening as Donald Trump's trade war is rattling global commerce, damaging longtime alliances and threatening economic growth worldwide.

President Recep Tayyip Erdogan also said that Turkey would prepare to trade with its key partners in local currencies so that it and its allies would not be dependent on the dollar.

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