Published: Wed, August 15, 2018
Finance | By Loren Pratt

Erdogan says Turkey will boycott USA electronics, lira steadies

Erdogan says Turkey will boycott USA electronics, lira steadies

The extra tariffs apply to imports of vehicles, alcohol, coal, rice and cosmetics.

President Erdogan has accused the U.S. of trying to "bring Turkey to its knees through threats over a pastor".

"It is wrong to dare bring Turkey to its knees through threats over a pastor", Erdogan said.

The Trump administration announced plans on Friday to double United States tariffs imports of steel and aluminum from Turkey. "If [the US] has the iPhone, there's Samsung on the other side", Erdogan was reported as saying.

"The president has a great deal of frustration on the fact that Pastor Brunson has not been released as well as the fact that other United States citizens and employees of diplomatic facilities have not been released", White House Press Secretary Sarah Sanders told a briefing. Erdogan warned that the putting decades-old alliances at risk and pushing Turkey to seek allies elsewhere.

The lira continued its recovery against the dollar on Wednesday as Turkey increased tariffs on United States goods and introduced measures to restrict bets against the embattled currency.

The dispute between the USA and Turkey has started an economic crisis in Turkey that has pushed its currency to historic lows. Erdogan said his country will boycott USA -made electronic goods amid a diplomatic spat that has helped trigger a Turkish currency crisis. On July 25, Brunson was placed under house arrest after nearly two years in a Turkish jail.

Lavrov echoed Erdogan's calls for countries to use their national currencies rather than the dollar in global trade, but there were no firm commitments on help for Turkey.

Erdoğan and Trump are locked in a dispute about the U.S. pastor Andrew Brunson, who was arrested nearly two years ago and accused of plotting against the Turkish government.

Tariffs have been imposed on 22 types of produce and goods imported from the United States, amounting to $533 million U.S. of extra duties, according to a report in the state-run Anadolu Agency, quoting Rushar Pekcan, the country's trade minister.

US-Turkish relations have been hurt by a series of issues from diverging interests in Syria, Ankara's plan to buy Russian defence systems and the detention of pastor Brunson.

The Turkish central bank has pledged to take "all necessary measures" to stabilize the country's economy to make sure the banks have all the money they need.

The lira had already rebounded about 8 percent on Tuesday on news of a planned conference call on Thursday in which the finance minister will seek to reassure worldwide investors.

Turkey's trade minister Ruhsar Pekcan said: "The United States is an important trading partner but it is not our only partner".

"We view the policy of sanctions as unlawful and illegitimate, driven mostly by a desire to dominate everywhere and in everything, dictate policies and call shots in worldwide affairs", Lavrov said.

Turkey has also been publicly critical of criminal prosecutions in the USA involving state-run Halkbank official Mehmet Hakan Atilla, as well as Reza Zarrab, a Turkish-Iranian gold trader.

Like this: