Erdogan Vows to Boycott U.S. Electronic Goods Amid Pastor Spat

Turkish Treasury and Finance Minister Berat Albayrak speaks

Turkish Treasury and Finance Minister Berat Albayrak speaks

Turkey detained Brunson after a failed 2016 coup that it blamed on Fethullah Gülen, a former ally of Erdoğan who now lives in Pennsylvania.

"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.

'If (the United States) have the iPhone, there's Samsung on the other side, ' he said, referring to U.S. giant Apple's iconic phone and the top South Korean brand.

Shares in Vestel zoomed up seven percent on the Istanbul stock exchange after Erdogan's remarks.

Turkey will soon be "selling high tech and design products to the world", Erdogan insisted during his speech.

The United States imposed sanctions on two Turkish government ministers over the trial on terrorism charges of U.S. evangelical pastor Andrew Brunson in Turkey, and last week Washington raised tariffs on Turkish metal exports.

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Turkish Airlines and Turk Telekom said the advertising boycott would encompass all written, visual and social media, although existing agreements would not be affected. "Necessary instructions on the issue have been issued to our agencies", Yahya Ustun, spokesman for the country's flag-carrier, wrote on Twitter.

Flag carrier Turkish Airlines and Turk Telekom made their announcements after a campaign on Twitter calling for an end to advertising in US media outlets.

"What you want to see is tight monetary policy, a tight fiscal policy and a recognition that there might be some short-term economic pain - but without it there's just no credibility of promises to restabilise things", said Craig Botham, Emerging Markets Economist at Schroders.

These import taxes came on top of 10% additional tariffs on aluminum and 25% on steel from all countries, in a bid by Trump to protect the USA steel industry and please voters in America's industrial heartland.

The lira stabilised against the USA dollar on Tuesday just above the all-time low posted early Monday, but most analysts believe the crisis is not yet over.

The Turkish lira started slipping again after rebounding more than 8% overnight.

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"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 global affairs", said Lavrov, predicting "such a policy can't be a basis for normal dialogue and can't last long".

Markets were also somewhat soothed by Turkey's central bank loosening cash buffer requirements for the country's banks and its finance minister setting up a call with investors. On Tuesday, one dollar was worth 7.2 lira.

"The plunge in the lira, which began in May, now looks certain to push the Turkish economy into recession, and it may well trigger a banking crisis", Andrew Kenningham, chief global economist at Capital Economics, told Reuters.

Relations between the two North Atlantic Treaty Organisation allies have spiraled into a full-blown crisis over the trial of Christian pastor Andrew Brunson, who was held for 21 months in a Turkish prison until his transfer to house arrest last month - a move Washington dismissed as insufficient.

Ankara has repeatedly said the case is up to the courts and a Turkish judge moved Brunson from jail to house arrest in July. He denies the charges.

National Security Adviser John Bolton met at the White House on Monday with Turkish ambassador Serdar Kilic, but the discussion reportedly did not result in any substantive progress.

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The Turkish envoy conveyed the message the pressure and threats would only lead to a "chaos" in relations which could only improve after Washington abandons the language of "threats", said Turkey's foreign minister Mevlut Cavusoglu.

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