ibusinesslines.com
ibusinesslines.com December 10, 2018


Erdogan says U.S. waging 'economic war' against Turkey

12 August 2018, 04:13 | Kelvin Horton

Erdogan says U.S. waging 'economic war' against Turkey

Erdogan says U.S. waging 'economic war' against Turkey

Turkish President Recep Tayyip Erdogan warned the USA on Saturday that his country does not respond to threats, a day after President Donald Trump sent the lira into freefall by announcing he would double the rate of import tariffs on Turkish metals.

The recent sell-off in the lira has been fuelled by investor concerns over Erdogan's grip on monetary policy under a new powerful executive presidency and the ongoing row with the United States. The Nasdaq composite was down more than 0.8 percent as technology stocks also dropped.

The currency is down 40 percent just this year, shaking worldwide investors' confidence in the country.

In a tweet, Trump cited the decline in Turkish currency as justification for increasing tariffs to 50 percent on Turkish steel and 20 percent on Turkish aluminum. He tweeted, "Our relations with Turkey are not good at this time!".

Turkey's financial crisis and further USA pressure spurred more concern among investors as fears appeared to spread to American markets. Financial upheaval risks further destabilizing an already volatile region.

He also said it was a pity that Washington chose Brunson over Turkey, its partner in North Atlantic Treaty Organisation, and in an opinion piece published in the New York Times, he warned the U.S. that Ankara had other alternatives as allies.

President Trump said he would double steel and aluminum tariffs on Turkey, deepening tensions over the country's refusal to free an American pastor.

He did not offer an explanation for the tariff hike, which raises the tariffs to 20 percent on aluminum and 50 percent on steel, though there are a couple of possibilities.

Although Erdogan struck a defiant tone, his foreign ministry called for diplomacy and dialogue to solve problems with Washington and Trade Minister Ruhsar Pekcan said "we implore President Trump to return to the negotiating table".


Trump added that the Turkish currency Lira "slides rapidly downward against our very strong Dollar!" On Friday, he said the country had to take steps in answer "to those who have waged an economic war against us".

The diplomatic spat sent the lira down 16% against the dollar on Friday.

A meeting between senior diplomats from the two countries on Wednesday in Washington did not produce significant progress to ease tensions over the trial of United States pastor Andrew Brunson in Turkey on charges of supporting terrorism and espionage. I am calling on those in America again.

Mr Erdogan said the USA had "repeatedly and consistently failed to understand and respect the Turkish people's concerns". As the lira falls in value, the debt becomes harder to pay. Turkey retaliated with Erdogan ordering authorities to freeze the assets of the USA justice and interior ministers in Turkey - "if there are any".

Cornell University economist Eswar Prasad told the New York Times Friday that Trump's announcement sets "a worrying precedent for future trade sanctions that could be triggered by purely market-driven changes in exchange rates ..."

Ankara blames for an attempted coup in 2016.

The Turks have also restricted American use of the Incirlik Air Base.

In March, the United States imposed extra 25 percent tariff on steel and 10 percent tariff on aluminum imported from a variety of countries, including Turkey.

Marcus Chenevix, Middle East analyst at TS Lombard said that Turkey's economy is fragile.



Other News

Trending Now

China's economy can withstand tariff war - USA
The final list targets "279 imported product lines" from China totaling $16 billion, that the USA will tax at a 25 percent rate. Additional duties on the USA products in the first part of the list, worth 34 billion US dollars, came into force on July 6.

Hundreds of flights cancelled across Europe in Ryanair strike
But some people took to Twitter to complain at how Ryanair handled the debacle after their flights were canceled. Another customer said she would miss work meetings and a doctor's appointment due to a cancelled flight.

Brad Pitt Fires Back at Angelina Jolie's Child Support Request
Yesterday, the Inquisitr shared that Jennifer Aniston reportedly feels bad for Pitt and all that he is going through. Hopefully, Pitt and Jolie can figure things out for the sake of their children.

England ace Chris Woakes boasts absurdly low Test average at Lord's
The second session will be vital with India still looking to get early wickets to keep England's first-innings lead to a minimum. That meant England were on 137 for five, already 22 runs ahead of India's first-innings total of 107.

We Can Push Manchester City - Former Liverpool Striker Convinced
According to data analysis website FiveThirtyEight, City has a 45-per-cent chance of winning the Premier League again this season. Ayew, who has 11 goals in 49 appearances for Ghana, scored 11 times for Swansea last season as he impressed in a struggling side.

Huddersfield Town 0 Chelsea 3: Disappointing result, not display, claims Wagner
Pedro sealed a comfortable win with a cool, chipped finish for Chelsea's third after being played in by substitute Eden Hazard . The ref needs to explain that to us because I don't understand why (it was not retaken)".

Paul Pogba Named Manchester United Captain - Starting XI V Leicester Confirmed
José Mourinho started the season with a win but still found time to aim a dig at Ed Woodward over his failure to sign more players in the transfer window.