U.S. tariff hike on Turkey fails to make economic sense

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In his morning tweet, Trump said: "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 Dollar!"

"Hami Aksoy also said on Friday that imposing sanctions on a North Atlantic Treaty Organisation ally wouldn't help Washington achieve its goals and would harm an "alliance that was built by surmounting arduous tests".

President Donald Trump announced tariff increases on Turkish metals as tensions between Turkey and the United States escalated.

That turned into a rout on Friday, with the lira diving more than 18 percent at one point, the biggest one-day drop since Turkey's 2001 financial crisis.

High level meetings in Washington between USA and Turkish officials over a detained American pastor ended this week without an apparent resolution.

"The U.S. runs the risk of losing Turkey as a whole".

The currency's sharp decline has reflected concerns about the fundamentals of Erdogan's economic model, which has depended on a voracious construction industry that his opponents say has enriched his inner circle while heaping debt on the country.

Relations with Washington worsened further Friday when Trump tweeted that he had authorized a 20 percent duty on aluminium and 50 percent duty on steel.

The currency's drop - 41 percent so far this year - is a gauge of fear over a country coming to terms with years of high debt, global concern over President Recep Tayyip Erdogan's push to amass power, and a souring in relations with allies like the U.S. "Failure to reverse this trend of unilateralism and disrespect will require us to start looking for new friends and allies", President Erdogan said.

As with the financial crisis set off by Greece in 2010, Friday's events were the latest example of how troubles in a nation with a midsize economy but world-class problems could threaten financial stability further afield.

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As a result of the U.S. sanctions, any property or interest in property of both Turkish ministers within USA jurisdiction is blocked, and United States persons are generally prohibited from engaging in transactions with them.

Erdogan said during an address to supporters: "Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".

Coupled with an inflation rate of almost 16 percent, that could cause severe damage to the local economy.

Graham called Turkey's case against Brunson a "sham".

"This could be the most expensive pastor in world history", Sekulow said, referring to the harm being done to Turkey's economy. "It is also noteworthy to observe the Trump administration's combination of the trade and sanctions policy playbooks, as visible earlier by the timing of the sanctions onRusal- one of the largest aluminum producers globally- amid a broader push for aluminum tariffs".

Turkey then retaliated by slapping import duties on $1.78 billion worth of USA products, including coal, paper, nuts, whiskey, autos, machinery and petrochemicals.

His comments on interest rates - and his recent appointment of his son-in-law as finance minister - have heightened perceptions that the central bank is not independent. Hard currency debt issued by Turkish banks suffered similar falls.

Aylin Ertan, a 43-year-old caterer in Ankara, said she was concerned over the future of her small business. "On some days, I end the day with a loss". European officials also rely on a deal with Turkey to restrain migrant flows in return for aid.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday.

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