Trump doubles metal tariffs on Turkey as lira falls by 20%

  • Trump doubles metal tariffs on Turkey as lira falls by 20%

Trump doubles metal tariffs on Turkey as lira falls by 20%

It hit a new record low after Trump announced he would punish Ankara in a wide-ranging dispute.

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

President Donald Trump said in a tweet Friday that he would hit Turkey with additional tariffs, as their national currency continues to drop.

Turkey vowed retaliation "without delay" and warned the move would further harm relations between the two allies.

The Turkish lira hit a record low on August 10 after President Donald Trump authorized the doubling of tariffs on imports of Turkey's steel and aluminum.

President Tayyip Erdogan told Turks on Friday to exchange their gold and dollars into lira, with the currency in free fall as President Donald Trump escalated a feud with Ankara by doubling tariffs on metals imports.

Meanwhile, investors are anxious about the economic policies of President Recep Tayyip Erdogan, who won a new term in office in June with sweeping new powers.

United States sanctions and president Erdogan's tightening control over monetary policy are driving the fall, which sent the lira to an all-time low of above 6 to the dollar this morning.

"This is a domestic and national struggle", Erdoğan said, according to The Associated Press.

President Trump has doubled United States tariffs on Turkish steel and aluminium, as the precipitous fall of the Turkish lira accelerates.

Erdogan spoke briefly Thursday night and alluded to problems with the currency, saying "various campaigns" were underway, adding: "If they have dollars, we have our people, our righteousness and our God". "Don't worry", Erdogan told a crowd in the northeastern city of Bayburt.

The U.S. was Turkey's biggest export market for steel past year, though exports have fallen since.

Turkey is front and center of the chaos on Friday, with its currency plunging to a record low against the United States dollar. He claims higher rates lead to higher inflation - the opposite of what standard economic theory says.

Axios reported that the Turkey is trying to lessen their dependence on Russian Federation, and the increased sanctions will make their goal more challenging to reach. Trump's Friday tweet caused a further drop in the Turkish currency. But since adopting increased powers, Erdogan appears to have greater control over the bank as well.

Economic experts believe the sharp fall of the lira is mainly because of concerns about the government's economic policies.

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.

"When it comes to cornering Turkey to extract certain concessions that undermine our sovereign rights, it is a whole another story". At one point, it was down as much as 19 percent on the day, before rallying a bit to bring it to "only" a 13.7 percent loss.

Now, if none of that makes sense to you, don't worry: It shouldn't.