Turkey hits back at USA with tariff hikes on key products

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President Recep Tayyip Erdogan raised tariffs on American cars to 120 percent and on alcoholic drinks to 140 percent.

Turkey and Russian Federation display further rapprochement after the United States imposed sanctions on Moscow and Ankara on different grounds.

Last Friday, US President Donald Trump said he had authorized higher tariffs on aluminum and steel imports from Turkey.

Turkey on Wednesday said it was hiking tariffs on imports of several key USA products in retaliation for American sanctions against Ankara, as a bitter dispute between the two allies that sent the Turkish lira into free-fall showed no sign of ending.

Turkey said on Wednesday it is increasing tariffs on imports of certain USA products, including rice, cars and coal, escalating a feud with the United States that has helped trigger a currency crisis.

Turkey said Wednesday it is increasing tariffs on some USA products like cars, alcohol, and coal - a move that is unlikely to have much economic impact but highlights the deteriorating relations with the U.S.in a feud that has already helped trigger a currency crisis.

It recovered by 5% to around 6.05 lira per dollar on Wednesday, after the government took steps to shore up the currency by reducing the daily limit in bank foreign currency swap transactions.

The lira, which has lost more than 40 percent against the dollar this year, meanwhile, continued to rally after central bank's liquidity moves had the effect of supporting the currency.

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Although Erdogan says he opposed interest rate hikes, he has not made a clear argument for why Turkey's central bank should keep rates low.

A Turkish court on Tuesday released two Greek soldiers detained since March on espionage charges for illegally crossing the border in a case that has stoked tensions with Brussels.

Markets are concerned by Erdogan's influence over the economy and his resistance to interest rate increases to tackle double-digit inflation.

Relations between Washington and Ankara have rapidly soured in recent weeks over Turkey's detention of the American pastor Andrew Brunson.

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

Turkish President Recep Tayyip Erdogan speaks during a news conference Tuesday at the presidential palace in Ankara. Turkey's exports to the United States a year ago amounted to $8.7 billion, making it Turkey's fifth-largest export market.

Turkey announced Wednesday that it is increasing tariffs on imports of certain USA products, escalating a feud with the United States that has helped trigger a currency crisis.

Erdogan has reacted to the financial instability by blaming foreign powers, in particularly the United States, a longtime North Atlantic Treaty Organisation, which he says is waging an "economic war" as part of a plot to harm Turkey.