Turkey Counterpunches By Raising Tariffs On U.S. Goods

Turkey Counterpunches By Raising Tariffs On U.S. Goods

Turkey Counterpunches By Raising Tariffs On U.S. Goods

"While the lira is stabilising, investors are still concerned that the crisis will spread to other emerging economies and currencies", said Hikaru Sato, senior technical analyst at Daiwa Securities".

"Rates have gone up by 10 percent".

On Tuesday, the lira recovered some ground, trading at 6.3300 to the dollar at 1947 GMT, up some 9% from the previous day's close and having earlier touched 6.2995.

The lira was also helped by a step from the banking watchdog BDDK, cutting the limit for Turkish banks' forex swap, spot and forward transactions with foreign banks to 25 percent of a bank's equity. "They are killing offshore lira liquidity to stop foreigners shorting the lira", he said. A Finance Ministry official said so far 3,000 people have signed up for the call.

Following the latest announcement, Turkey's presidential spokesman Ibrahim Kalin has called on the U.S.to engage in diplomacy.

The Turkish government doubled its tariffs on imports of American cars and alcoholic beverages to 120 and 140 percent, respectively, CNN reported. Ankara has responded by threatening to boycott United States gadgets including Apple iPhones and sharply increasing duties on a number of American goods like tobacco, alcohol, cars, cosmetics, etc.

The duties were raised in response to the USA administration's "deliberate attacks on our economy", Vice President Fuat Oktay wrote on Twitter.

The Trump administration announced plans on Friday to double USA tariffs imports of steel and aluminum from Turkey.

Apple has 22 percent of the smartphone market in Turkey, where 11.4 million units were sold a year ago, according to Ramazan Yavuz, research manager at IDC consultancy company. Erdogan accused the United States of conspiring against Turkey and said that the slide in its currency doesn't make any sense logically.

Turkey and the USA have been locked in a heated crisis emanating from unjust sanctions and the actions of Trump, as Washington levied sanctions on Interior Minister Süleyman Soylu and Justice Minister Abdulhamit Gül for not releasing American pastor Andrew Brunson, who faces terrorism charges in Turkey.

A court in the western Turkish city of Izmir rejected a new appeal to free Brunson on Wednesday, the state television TRT reported.

It usually takes a court between 3 to 7 days to process an appeal but a ruling could come sooner in this case, Brunson's lawyer Ismail Cem Halavurt told Reuters.

Brunson is at the moment under house arrest.

President Erdogan said on Tuesday that Turkey was taking measures to stabilise its economy and should not "give in to the enemy" by investing in foreign currencies.

As President Recep Tayyip Erdogan lashed out at the USA, took higher rates off the table and said he wouldn't accept an global bailout, traders pushed down Turkish assets in a selloff that spilled over to other developing economies.

The Union of Chambers and Commodities Exchanges of Turkey and the Turkish Industry and Business Association called on the government to cut spending, improve ties with the European Union and bring to an end the spat with the U.S.

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