Published: Mon, August 13, 2018
Worldwide | By Gretchen Simon

Additional steel tariffs on Turkey to begin Aug. 13

Additional steel tariffs on Turkey to begin Aug. 13

Turkish President Recep Tayyip Erdogan on Thursday also dismissed concerns over the tumbling lira and called on his nation to "have no worries".

Kinder Morgan Inc, the second largest North American pipeline operator, had already ordered almost half of the specialized pipe needed for its Gulf Coast Express project from Turkish steel maker Borusan Mannesmann before the original tariff went into effect, spokeswoman Sara Hughes said.

President Trump ordered a doubling of US tariffs on steel and aluminum imports from Turkey Friday, escalating a diplomatic spat with a key North Atlantic Treaty Organisation ally.

"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!" "Our relations with Turkey are not good at this time!" he said.

In an opionion piece in the New York Times, he warned the US that Ankara had other alternatives as allies.

Trump said he had authorised higher tariffs on imports from Turkey, imposing duties of 20 percent on aluminium and 50 percent on steel.

Mr Trump's tweet caused a further drop in the Turkish currency, which is now down 13% on the day.

"President Erdogan's strengthened powers under the new presidential system have made it increasingly uncertain whether policymakers will be able to act to stabilize the economy", William Jackson, the chief emerging markets economist at Capital Economics in London, said.

The White House also cited currency movements in China last week when Trump called for a possible increase in tariff rates on Chinese imports. "This is a domestic and national struggle".

Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fueling economic growth.

England v India: second Test, day two
The Indian batsmen have themselves to blame as much as the top-class bowling from the English fast-bowlers led by James Anderson. The challenge for Kohli's side after the tea break is exactly the same as it was after the lunch break: take early wickets .

If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks.

The lira has lost more than 40 percent this year.

The central bank raised interest rates to support the lira in an emergency move in May, but it did not tighten at its last meeting.

His comments did nothing to shore up the lira currency.

He appeared to blame foreigners for trying to hurt Turkey, saying: "This will be my people's response against those waging an economic war against us". "Don't forget, if they have their dollars, we have our people, our God".

In a bid to ease investor concerns about Turkey's economic policy, the country's finance minister says the government will safeguard the independence of the central bank. Turkey's currency sagged to an all-time low Friday amid doubts about the country's economic management and souring ties with the United States.

Turkey's sovereign dollar-denominated bonds tumbled, with many issues trading at record lows. As the currency drops, Turkish companies and households with debt in foreign currencies see the cost of repaying those loans expand.

Aylin Ertan, a 43-year-old caterer in Ankara, said she was concerned over the future of her small business. 'On some days, I end the day with a loss'.

Turkey is home to the Incirlik air base which is used by USA forces in the Middle East, it host to a Key part of the Western alliance's missile defense system again Iran.

"The basic reason the exchange rate has gone off the rails is that confidence in the management of the economy has disappeared both domestically and overseas", said Seyfettin Gursel, a prominent economist and a professor at Turkey's Bahcesehir University.

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