Turkey issues retaliatory tariffs on USA imports

Turkey ramps up US spat with huge tariffs on cars and other goods

Using different angles, the papers - include the New York Times, Wall Street Journal, and Washington Post - implied that Turkey and its President Recep Tayyip Erdogan will move closer to Russian Federation, also claiming the bilateral rift between Ankara and Washington could stall progress against the Daesh terror organization.

On Wednesday, Turkey doubled tariffs on some imports from the USA - such as passenger cars, alcohol and tobacco - in what it said was retaliation for "deliberate attacks" on its economy. Turkey will continue talks with the United States if it shows a constructive stance to resolve the diplomatic row, Ibrahim Kalin said, adding that no discussions were planned.

The Turkish lira has dropped to record lows in recent weeks, having fallen some 42 percent so far this year.

The Trump administration has levied tariffs against Istanbul over Turkish President Tayyip Erdogan's refusal to release Pastor Andrew Brunson after he had given the U.S. assurances that it would do so.

In retaliation on Wednesday, Turkey said it was imposing taxes of ranging from 50 to 140 per cent on rice, alcohol and cars from the U.S. That comes after Erdogan called on Turks to boycott American electronics, like the iPhone, which have in any case become a lot more expensive as the lira lost nearly 40 per cent of its value this year.

Also Wednesday, the Turkish government doubled tariffs on some United States imports including cars and alcohol.

Only one USA measure directly affects Turkey's economy: Trump's decision to increase tariffs on the import of Turkish steel and aluminum.

The trade spat between the USA and Turkey stems from the detention of American pastor Andrew Brunson.

Many economic crises in emerging market countries like Turkey follow periods of domestic support for governments that focus on electoral gains and avoid unpopular economic reforms, and pressure on the Turkish lira is likely to persist if Turkish authorities shun decisive action, said Nafez Zouk, an analyst at Oxford Economics.

Investors are anxious that about Erdogan's control over the central bank and his pressure to keep it from raising interest rates. The cost of insuring Turkey's sovereign debt against default - already higher than Pakistan and Greece - increased as the standoff between Turkey and the USA worsened.

Erdogan has said that Turkey is the target of an economic war and has made repeated calls for Turks to sell their dollars and euros to shore up the currency.

The investment package was announced after Qatar's Emir Tamim bin Hamad Al Thani met President Tayyip Erdogan in Ankara, as Turkey grapples with a collapse in the lira and tensions with North Atlantic Treaty Organisation ally the United States.

She said: "the United States is an important trading partner, but it is not our only partner".

The lira firmed as far as 5.75 against the dollar on Wednesday and stood at 5.90 at 2058 GMT.

Washington has imposed financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey as the Trump administration tries to secure the release of Brunson, who it says was framed.

That's according to Turkish state media, which also reported a higher court will likely review the appeal.

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