White House condemns Turkey's tariffs on USA imports

Turkey's President, Recep Tayyip Erdogan, has so far resisted pressure to implement monetary and fiscal orthodoxy, choosing instead to lash out at both the financial markets and the US.

Erdogan thanked the emir and the people of Qatar for "standing by Turkey", the official Anadolu news agency reported.

Turkey's downtrodden currency, the lira, surged Wednesday morning hours after the country's government levied significant tariffs against American goods in response to what it has called "deliberate attacks" against its economy. "It can buy time, finger in the dike, but the longer term issues remain", said Tim Ash, a senior emerging-market strategist at Bluebay Asset Management LLC in London. "Let's see if the Chinese and Russians put some money on the table".

The two countries have also been in conflict in Syria's war.

Kalin said Erdogan would hold telephone conversations with German Chancellor Angela Merkel later Wednesday and with Emmanuel Macron of France on Thursday.

"Intelligence officials conceded that the most recent strain between Turkey and the United States - over American sanctions to punish Turkey for the detention of Andrew Brunson, an evangelical pastor from North Carolina - could halt new progress against the Islamic State [Daesh]", said the newspaper.

The pastor is now being held under house arrest.

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

Since Erdogan's June 24 election victory the lira has lost a quarter of its value against the dollar.

"There has also been an increase in borrowing of the underlying sovereign bonds, in part the result of hedging CDS (credit default swaps) sold by market makers", IHS Markit analyst Sam Pierson said in a note.

Erdogan's clear message was, "We will not raise interest rates in the face of a currency collapse", Stein explained.

The lira firmed as far as 5.75 against the dollar on Wednesday and stood at 5.9350 at 0745 GMT in a move initially triggered by a Turkish court decision to release two Greek soldiers facing espionage charges. However, interest rates in the industrialized democracies are rising now.

Markets weren't all rosy. "They don't hesitate to use the economy as a weapon", the president noted, suggesting that Turkey may soon boycott American electronics, including the iPhone.

"Rates have gone up by 10 percent".

Turkey is boosting tariffs on imports of certain USA products, including rice, cars, alcohol, coal and cosmetics - escalating a feud with the United States that has helped trigger a currency crisis. Unlike many other news organizations, we have not put up a paywall.

" 'We are going to apply a boycott on America's electronic products, ' Erdogan said Tuesday during a televised speech, adding that there were alternatives, produced by South Korean or Turkish companies". He said the country's banks and banking regulator "will take the necessary measures quickly".

"The tariffs are specific to national security", she said.

  • Wendy Palmer