Currency crisis in turkey- Qatar offers aid to Ankara

White House Says Turkey’s Tariffs on U.S. Goods Are ‘Wrong Direction’

White House Says Turkey’s Tariffs on U.S. Goods Are ‘Wrong Direction’

Tariffs were also increased on cosmetics, rice and coal.

The war of words between Turkey and the United States has escalated significantly in the past week as the USA calls for the release of an American evangelical pastor. "But one could hardly say the same about Turkey's announced tariffs on American cars, alcohol, and tobacco. If they back the American position on Turkey tariff penalties, then they lose Turkey".

The pastor is at the center of an escalating spat between the United States and Turkey.

The crisis has sent the Turkish currency into free fall since Friday.

Image Zoom
Image Zoom

The country's currency, the lira, has fallen sharply against the US dollar in recent weeks but rebounded after the aid announcement. The currency picked up 6 percent and strengthened briefly at just under 6 to the dollar. Bar owner Burhan Coban said consumer and distributor prices for American whiskey are the same, for now, despite the currency plunges and the new Turkish tariffs.

Some feel Erdogan's signal in his article titled "How Turkey Sees the Crisis with the U.S." that Ankara is not without options aims more to please the public.

The case now lies at the heart of a bitter row between North Atlantic Treaty Organisation allies Turkey and United States, who have been growing apart for years over a series of disagreements on Syria, their perception of security threats and defense deals.

"The progress that we want to be made is to have Pastor Brunson return home, and I'll leave it at that", U.S. State Department spokeswoman Heather Nauert said on August 9th. The same day, the country's government announced that it would hit us imports with a new round of tariffs. Brunson's lawyer told CBS News that a higher court was still considering the appeal and could overrule that decision. The White House, however, has not changed its threatening rhetoric thus far. White House press secretary Sarah Sanders that Washington will withdraw sanctions on Turkey if Brunson was set free.

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Sanders also criticized Turkey's imposition of tariffs on some USA goods as "regrettable and a step in the wrong direction".

"Qatar has pledged $15 billion of direct investments in Turkey", tweeted Ibrahim Kalin after President Recep Tayyip Erdogan met with Sheikh Tamim bin Hamad al-Thani, Qatar's emir, in the capital Ankara.

Turkish officials say President Recep Tayyip Erdogan spoke by phone with German Chancellor Angela Merkel and stressed that a strong Turkish economy is also in Germany's interest.

The currency strengthened some 3 percent against the dollar on Thursday, trading at around 5.75 per dollar, hours before Turkey's treasury and finance minister were scheduled to reassure global investors about the economy.

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"They are squeezing lira liquidity out of the system now and pushing interest rates higher", said Cristian Maggio, head of emerging markets strategy at TD Securities. Other Turkish markets were less buoyant: the main share index dipped 1.4 percent and the 10-year benchmark bond yield rose to 21.37 percent from 21.02 percent.

The tensions and the tariff hike by the U.S. have caused the Turkish lira to bleed value, fanning fears the country is on the verge of an economic crisis that could spillover into Europe.

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