Trump doubles tariffs on Turkish metals

Compounding the lira's agony, President Donald Trump said he had doubled steel and aluminium tariffs on Turkey, noting that relations between the North Atlantic Treaty Organisation allies were "not very good".

Trump tweeted that he had authorized the doubling of steel and aluminum tariffs "with respect to Turkey".

President Donald Trump says the United States has chose to increase tariff rates on Turkish steel and aluminum.

The United States is the biggest destination for Turkish steel exports with 11% of the Turkish export volume.

Image: Donald Trump claimed 'relations with Turkey are not good at this time!'

The United States had warned it was reviewing Turkey's duty-free access to its markets, after Ankara imposed retaliatory tariffs on USA goods in response to American tariffs on steel and aluminium.

President Tayyip Erdogan told Turks on Friday (Aug 10) to sell their gold and dollars to support the crumbling lira, with the currency in free fall as President Donald Trump escalated a feud with Ankara by doubling tariffs on metals imports.

On Friday, as the Lira plunged and the US imposed its higher sanctions on Turkey, Turkish President Erdogan and Russian President Vladimir Putin spoke on the phone.

Trump's announcement came less than an hour after Turkish President Tayyip Erdogan urged Turks to help defend the country against what he called economic war against the country.

Erdogan reportedly was defiant, telling worshipers after Friday prayers that Turkey "will not lose the economic war".

Mr Erdogan has linked Gulen's fate to that of American Christian pastor Andrew Brunson, who is on trial in Turkey on terrorism charges for allegedly supporting a group that Ankara blames for the failed coup.

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Some US officials say Turkey is holding Brunson as a bargaining chip after an executive at Turkey's state-owned Halkbank was convicted and imprisoned in the United States in May for helping Iran evade US sanctions.

Trump's action on Friday indicates he is willing to use his presidential powers as an economic and diplomatic weapon, even against allies, the Wall Street Journal reported.

According to the Capital Economics consultancy, the plunge in the lira risks putting further pressure on the banking sector in Turkey due to the scale of the credit boom and one third of bank lending being denominated in foreign currencies. Turkey answered the March tariff announcement by placing its own tariffs on $267 million of US goods.

"Most of the actors in the Washington scene think that carrots just don't work with Turkey, just the stick", said political analyst Atilla Yesilada of Global Source Partners.

Last week, the U.S.

The lira fell 7% against the dollar to 5.9655 on Friday morning after hitting an all-time low earlier in the session.

The slump is attributed to the tensions with the USA and concerns about President Recep Tayyip Erdogan's control of monetary policy.

As you can imagine, more people are reading The Jerusalem Post than ever before. Overnight it had retreated to its lowest since November 2016 on threats of new USA sanctions, weakening beyond the psychologically important 65-per-dollar threshold. "If they have their dollar, we have the people, we have Allah".

The Dow Jones Industrial Average had lost more than 270 points by 2:45 p.m. Friday, a 1 percent loss, while falling bank stocks dragged the S&P 500 index down roughly 0.9 percent.

Turkey's treasury and finance minister Berat Albayrak - who is Mr Erdogan's son-in-law - tried to ease investor concerns during a conference, saying the government would safeguard the independence of the central bank.

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