Donald Trump Authorizes More Steel and Aluminum Tariffs on Turkey

Turkish delegation returns home after meeting in US

The weakened currency's value has helped increase inflation and anxious worldwide investors.

Turkey is world's sixth-biggest steel producer, and eighth largest steel importer for the U.S. according to the International Trade Administration. The lira fell further after Mr Trump's tweet.

World stock markets fell Friday, particularly in Europe, as investors anxious about the financial stability of Turkey, where the currency has nosedived.

One of the triggers of the turmoil has been a standoff with the US over detained American pastor Andrew Brunson.

Then, on Friday, just as the Turkish lira was in a state of free fall, U.S. President Donald Trump helped exacerbate Turkey's problems by announcing dramatically increased tariffs on metal imports from Turkey.

The lira may slide another 5%-10% before recovering to 5 lira to the dollar by the end of the year, according to a report from ABN Amro. European and American bank stocks declined on concerns about their exposure to Turkey.

Turkey's currency fell Friday after its economy was rattled by the United States' move to slap the country with more tariffs.

Trump said Friday on Twitter that he authorized a new 20 percent tariff on aluminum and 50 percent tariff on steel from Turkey.

'If they have their dollar, we have the people, we have Allah, ' he said.

Turkey remains at loggerheads with the United States in one of the worst spats between two North Atlantic Treaty Organisation allies in years over the detention of American pastor Andrew Brunson and a host of other issues. The U.S. recently hit two high-ranking Turkish officials with sanctions after the Turkish government refused to release imprisoned Christian pastor Andrew Brunson.

Turkish President Recep Tayyip Erdogan won another term in office in June with expanded powers.

His characteristic defiance has further unnerved investors.

The lira's fall has been made worse by President Recep Tayyip Erdogan's statements on economic policy.

"Those who have dollars, euros or gold under their pillows should go and exchange them into [Turkish] lira. Don't worry", Erdogan told a crowd in the northeastern city of Bayburt.

The Turkish president took aim at the U.S. in his address, claiming "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". Gulen denies involvement, and the USA government says it has no evidence to justify his extradition.

Brunson, an evangelical Presbyterian from North Carolina, was jailed for allegedly supporting a group that Ankara blames for the failed coup.

Brunson denies both charges and his supporters argue that these accusations were fabricated by the Turkish government.

Erdogan enjoys the support of many Turks even though rents and food and fuel prices have all surged.

"First of all, confidence needs to be regained". But now, the relationship appears to have gone sideways.

Oil prices rose more than 1 percent as US sanctions against Iran looked set to tighten supply, but futures remained lower for the week as investors anxious that global trade disputes could slow economic growth and hurt demand for energy.

As the currency weakens, it can make foreign investors pull their money out of Turkish stocks and bonds as their lira investments lose value.

This did nothing to revive the lira. "Albayrak's plan was uninspiring at best".

He is a self described "enemy of interest rates" and wants banks to lend cheap credit to fuel growth, something experts are anxious could seriously affect the economy.

The trouble is that for all of Albayrak's talk of Central Bank independence, Erdogan is fiercely opposed to any interest rate hikes, which are widely seen as necessary to stem the bleeding. He has urged the central bank to not raise interest rates.



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