Erdogan warns Trump Ankara may seek ‘new friends’

Erdogan warns Trump Ankara may seek ‘new friends’

Erdogan warns Trump Ankara may seek ‘new friends’

US President Donald Trump is doubling tariffs imposed on Turkish steel and aluminum, insisting that the relationship between the two countries is 'not good'.

Trump struck a vengeful note, announcing, "I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong our very strong Dollar!"

The move against President Recep Tayyip Erdogan's government also highlights the disconnect between Turkey and the U.S.as they fail to negotiate their way out of an array of conflicts.

Last week the U.S. government announced sanctions against Turkey's interior and justice ministers, to which Ankara responded by freezing the assets of two American officials in Turkey. Turkey answered the March tariff announcement by placing its own tariffs on $267 million of USA goods. Trump tweeted Friday morning.

Turkish President Recep Tayyip Erdogan said at a rally in the city of Rize on Saturday that Ankara is ready to trade with its partners in national currencies. "Relations with countries who behave like this have reached a point beyond salvaging", said Erdogan, who warned of "economic war".

United States investment bank Goldman Sachs alarmed investors with an assessment that a further drop in the lira to 7.1 to the dollar "could largely erode" the excess capital of Turkish banks.

Erdogan on Friday once again urged Turks to exchange gold and dollars into lira to stop the currency from plunging.

Later speaking in northeastern Rize province, Erdogan spoke of Turkey's plans to trade in local currencies with some countries.

The diplomatic rift between the countries has made the Turkish lira set multiple record lows in the past week.

After winning a June election with revamped powers, Erdogan tightened his control over the central bank and appointed his son-in-law Berat Albayrak to head a newly-empowered finance ministry. The entire Turkish public is against USA policies that disregard Turkey's legitimate security demands.

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

"We doubt Turkey is ready to limit its fiscal flexibility right now". Furthermore, consternation in the U.S. Congress has led to a nascent bill that could limit Turkey's ability to obtain loans from any U.S. -based financial institutions.

Independent analysts argue the central bank should instead raise rates to tame inflation and support the currency.

Turkey said it would respond to the new USA tariff action "without delay" and warned the move would further harm relations between the two countries.

The new duties on Turkey are double the level that Trump imposed in March on steel and aluminium imports from a range of countries.

So, to hike tariffs on Turkey, Trump needed a reason why maintaining America's domestic metal industry required imposing even steeper tariffs on Turkish exports than were already in place.

James Petras, author and political commentator, made the remarks in an interview with Press TV on Saturday when asked to comment on USA interference in Turkey and Venezuela.

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

Erdogan's "tight grip" on the central bank and the fact "higher interest rates do no fit with Turkey's economic growth strategy" meant that the central bank has kept interest rates on hold, Nora Neuteboom, economist at ABN Amro, told AFP. It is obvious how it will be done: "since the final decision-maker of all policies in the new regime is the president, the responsibility of regaining confidence is on his shoulders", said Seyfettin Gursel, a professor at Turkey's Bahcesehir University. As the currency drops, Turkish companies and households with debt in foreign currencies see their debts expand.

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