Turkey issues retaliatory tariffs on USA imports

Marco Green
August 15, 2018

He said Russian Federation and Turkey have set a goal to switch from dollars to national currencies in mutual trade.

'If (the United States) have the iPhone, there's Samsung on the other side, ' he said, referring to USA giant Apple's iconic phone and the top South Korean brand.

The ruckus between Turkey and the USA has impacted on other countries' currencies, including the Indian rupee, as investors fear the lira's wobbles could spread to developing nations.

Ankara acted amid increased tension between the two North Atlantic Treaty Organisation allies over Turkey's detention of a Christian American pastor and other diplomatic issues, which have helped send the lira tumbling to record lows against the dollar.

Erdogan has been repeatedly photographed with Apple products including the iPhone and iPad.

On Friday, U.S. President Trump said the he made a decision to impose a 50 percent ad valorem tariff on steel articles and 20 percent on aluminum imported from Turkey, specifically targeting the slide in the Turkish lira and the economy as he wrote on his Twitter account.

Under the campaign, Turkish firms' ads are being pulled from USA platforms such as Google, Facebook, YouTube, Twitter, and Instagram.

"The Turk Telekom family is joining the #NoAdsinUS campaign, standing on the side of our state and our people. Necessary instructions on the issue have been issued to our agencies", Yahya Ustun, spokesman for the country's flag-carrier, wrote on Twitter.

The BBC Turkey correspondent Mark Lowen said Mr Erdogan's boycott could stoke tensions with the U.S. further - and Turks are waiting nervously for Mr Trump's response.

"They don't hesitate to use the economy as a weapon", he said. "What do you want to do?"

"We supported him with our lives on July 15", shopkeeper Arif Simsek said, referring to a failed 2016 military coup.

Turkey has economic problems that it should take notice of and fix such as a wide current-account deficit and high consumer inflation rate.

US National Security Adviser John Bolton met with the Turkish ambassador to Washington on Monday, suggesting that diplomatic efforts are continuing, according to the AP. Like other emerging markets, Turkish companies borrowed heavily in dollars when United States interest rates were low, fuelling a consumer boom that is running out as the dollar strengthens.

Following US-imposed sanctions, the Turkish lira has experienced one of the sharpest falls in value in its nearly 175-year history.

He clarified that there were no talks now planned between President Erdogan and President Donald Trump.He told the news conference that Turkey will take a positive stance towards trading in national currencies to escape from United States dollar pressure.

Turkey has raised tariffs on some U.S. imports, including passenger cars, alcohol, tobacco, the country's Official Gazette said on Wednesday. This has raised concerns over the central bank's independence given the president's repeated statements against raising interest rates.

Turkey has increased tariffs on some U.S. imports, including cars, alcohol and tobacco, as the diplomatic row between Ankara and Washington escalates.

Attention will turn Thursday to an address by the finance minister to foreign investors for clues on any change in economic policy.

Other reports by Click Lancashire

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