Trump doubles steel and aluminum tariffs on Turkey to 20 and 50%

  • Trump doubles steel and aluminum tariffs on Turkey to 20 and 50%

Trump doubles steel and aluminum tariffs on Turkey to 20 and 50%

President Tayyip Erdogan told Turks on Friday to exchange their gold and dollars into lira, with the country's currency in free fall after President Donald Trump turned the screws on Ankara by doubling tariffs on metals imports.

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira".

Turkey also wants the United States to extradite Fethullah Gulen, a Pennsylvania-based Muslim cleric who Turkish authorities say masterminded the coup attempt against Erdogan in which 250 people were killed.

"There is zero credibility in the Central Bank of Turkey and zero credibility in Turkish policy making".

Investors hoping Erdogan's comments would give some indication that the government was prepared to support the lira were disappointed with the currency crashing further in value. "On some days, I end the day with a loss". He claims higher rates lead to higher inflation - the opposite of what standard economic theory says.

But President Erdogan brushed off any concerns during a speech in the northeastern city of Bayburt on Friday, saying: 'The dollar can not block our path.

Officials from Mr Erdogan's office said the two men "expressed pleasure" that relations between Turkey and Russian Federation were progressing "positively" amid joint defence and energy projects.

President Recep Tayyip Erdogan on Thursday portrayed the currency drop as a "campaign" to harm Turkey.

Washington has demanded the pastor's release and imposed financial sanctions on two Turkish ministers and warned of additional measures.

In this file photo taken on July 25, 2018, United States pastor Andrew Craig Brunson is escorted by Turkish plainclothes police officers to his house on in Izmir.

Inflation stands at almost 16% but Turkey's central bank is reluctant to act - especially with the president having described himself as an "enemy of interest rates".

"In that sense, the Turkey situation can be a contagion not only in Europe but across emerging markets", Anderson said.

"In most cases though, we suspect that this resilience will prove temporary", they said, highlighting expectations of rising USA interest rates and worries over growing USA protectionism.

"The Central Bank's independence should always continue as a principle". European and American bank stocks declined on concerns about their exposure to Turkey.

The Single Supervisory Mechanism (SSM) for the European banking system has begun monitoring, in particular Spain's BBVA, Italy's UniCredit and France's BNP Paribas.

Late on Friday, the rand was trading at more than R14 to the dollar, its worst point since a credit downgrade in November.

Investors fear Turkey is teetering on the edge of financial crisis following a dramatic plunge in its currency that has gathered pace this week.

Berat Albayrak, the Treasury minister and Mr Erdogan's son-in-law, is due to announce a "new economic model" for Turkey...