Published: Wed, August 15, 2018
Money | By Hannah Jacobs

Turkey raises tariffs on some USA imports in response to economic 'attacks'

Turkey raises tariffs on some USA imports in response to economic 'attacks'

Tariffs on other goods like cosmetics, rice and coal were also doubled.

Turkish Vice President Fuat Oktay said on Twitter that the measures were in response to "the deliberate attack of the United States administration on our economy".

Turkey has suffered the most from the feud, which has helped push its currency, the lira, to record lows against the dollar.

The call from businesses came as Erdogan demanded a boycott of Apple and other US -made products in an effort to hurt the United States.

Turkey's economy has been under the threat of sanctions from the us after President Donald Trump tweeted earlier this year that this would be a probable course of action if an American pastor, Andrew Brunson, was not freed from jail.

Details about the U.S-Turkey crisis have been unfolding over the past few days: a pastor as stage hostage, frozen assets for ministers on both sides, tariffs on Turkish exports of aluminum and steel to the USA, a Trump tweet here, a fiery Erdogan speech there.

It is not clear if this will be an official government boycott or just a call to the Turkish public to stop buying American electronics.

U.S. Charge d'Affaires Jeffrey Hovenier talks to members of the media after visiting United States pastor Andrew Brunson, who is being held under house arrest in Izmir, Turkey, Aug. 14, 2018.

Erdogan has warned Turkey could seek alternative partners pointing to Ankara's strong ties with Russia, Iran and China.

Erdogan also renewed a call for Turks to convert their dollars into the lira, to help strengthen the currency.

Erdogan said Turkey was facing an "economic attack" and a "bigger, deeper operation" but showed no sign of making concessions to the United States.

The Trump administration imposed its own financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on the country earlier this month as President Donald Trump tries to secure the Brunson's release. Erdogan stressed that any product made by the USA could be made even better in Turkey, and that for the time being the country would pivot to using South Korea's Samsung electronics. The Turkish leader has consolidated power after a failed coup attempt in the winter of 2016, not long before America's presidential election.

The ruckus between Turkey and the U.S. has impacted on other countries' currencies, including the Indian rupee, as investors fear the lira's wobbles could spread to developing nations.

Turkey's ambassador to Washington Serdar Kilic held talks with U.S. national security advisor John Bolton in a meeting which Ankara said was arranged by the White House.

The lira was trading on Wednesday at 6.02 to the dollar, a gain in value on the day of 5.5 percent. "Our relations with Turkey are not good at this time!" he wrote.

Erdogan said his government would offer further incentives to companies planning to invest in Turkey and said firms should not be put off by economic uncertainty.

Andrew Craig Brunson, an evangelical pastor from Black Mountain, N.C., arrives at his house in Izmir, Turkey, on July 25.

Meanwhile, Turkey has also decided reject a US appeal calling for the release of an imprisoned American pastor.

Brunson filed a new petition for release on Tuesday, asking a Turkish court to "prevent unlawful political interventions by lifting judicial control provisions on the defendant".

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