U.S. ups metal tariffs on Turkey
12 August, 2018
U.S. President Donald Trump intensified his spat with Turkey on Friday by imposing higher tariffs on metal imports, putting unprecedented economic pressure on a NATO ally and deepening turmoil in Turkish financial markets.
Criticizing the state of the U.S. relationship with Ankara, Trump announced on Twitter that he had authorized a doubling of duties on aluminum and steel imported from Turkey, making them 20 percent and 50 percent respectively.
The White House said Trump would use a section of U.S. law that allows for tariffs on national security grounds to impose the increased duties.
Washington and Ankara have been at odds for months over an American pastor detained in Turkey, the Syrian civil war and other diplomatic issues.
Trump’s move sent Turkey’s lira currency deeper into tailspin. The lira, which has long been falling on worries about the government’s influence over monetary policy and the U.S. tensions, plunged more than 18 percent at one point on Friday to a record low against the dollar.
Even before Trump’s announcement, Turkish President Recep Tayyip Erdogan told Turks to exchange gold and dollars for lira in order to fight “an economic war.” Waves from the crisis spread abroad, with investors selling off shares in European banks with large exposure to the Turkish economy.
“I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!” Trump said in an early morning post on Twitter.
“Aluminum will now be 20 percent and Steel 50 percent. Our relations with Turkey are not good at this time!”
The United States, the world’s biggest steel importer, imposed tariffs of 10 percent on aluminum and 25 percent on steel in March for imports from a variety of countries. Turkey is the sixth-largest steel exporter to the United States.
Ankara sent a delegation this week to Washington to meet with both the State and Treasury Departments to resolve some of the disputes but those talks showed no signs of breakthrough.
Last week, the United States imposed sanctions on Turkey’s justice minister and interior minister for not releasing U.S. pastor Andrew Brunson.