Relations with Turkey are not good!

Turkey fails to resolve disputes with US

On Friday, Trump announced that the U.S. will impose a 20 percent duty on aluminum and 50 percent one on steels as tensions mount between the two North Atlantic Treaty Organisation allies over Ankara's imprisonment of USA pastor Andrew Brunson.

"Aluminum will now be 20 percent and Steel 50 percent". "Our relations with Turkey are not good at this time!" he noted.

Turkey exported $1.04 billion (€0.91 billion) worth of steel and $60 billion worth of aluminum to the USA in 2017, according to the Hurriyet newspaper.

The US dollar surged to new 2018 highs in the early hours of Friday morning on a mixture of concerns over the currency situation in Turkey, consistent expectations on the performance of the US economy and the outlook that the United States should be better prepared to handle the negative headwinds from a trade war, in comparison to those economies that it targets.

Erdogan, who says a shadowy "interest rate lobby" and Western credit ratings agencies are attempting to undermine Turkey's economy, said Turks should exchange their gold and dollars into lira to help the currency.

While it was true US sanctions on a few top Turkish officials over an American pastor being detained had put more pressure on the lira this past week, this was far from the main reason their currency has been falling so fast.

On Friday, Mr Erdogan also held a telephone call with Russian President Vladimir Putin, with the pair discussing economic ties between their two countries.

It fell to a record low this morning, and has now dropped 18 per cent today to 6.5 lira to the dollar, compared with 5.5 lira last night, as a deepening monetary crisis and diplomatic relations with the U.S. deteriorated. United States stocks were also rattled. "It just shows the importance of the evangelical vote in the U.S.as it heads to midterms".

They are also concerned over the central bank's ability to rein in persistent double-digit inflation with the president repeatedly calling for lower rates.

Far worse than that, though, is this has also sent Turkey's currency on a downward spiral that threatens to destroy its entire economy. It fell yet further to 6.2 to the dollar at 1254 GMT, almost 12 percent weaker on the day. "Repeated efforts to communicate to the U.S. administration that none of the stated criteria driving America's tariffs are applicable to Turkey have thus far proven fruitless", he said.

The lira has lost more than 40 percent this year.

Speaking to supporters in the Black Sea province of Rize late on Thursday, Erdogan again spoke of campaigns against Turkey.

Still, the sell-off may not be over after the government struck a defiant tone on Friday even after Trump's move.

Securing the release of Brunson, arrested in 2016, is a top priority for the United States, and it is also tussling with Turkey over the detention of three locally employed US embassy staff, trade issues and differences over Syria.

Analysts suggest Erdogan could have Washington in mind, given Ankara is demanding the extradition of USA -based Turkish cleric Fethullah Gulen, who is blamed for masterminding the botched 2016 military takeover.

Meanwhile, Turkish Treasury and Finance Minister Berat Albayrak is expected to present a new economic development doctrine for the country on Friday. "This will be my nation's response to those who have declared an economic war", Erdogan said during the rally.

Oil prices rose more than 1 percent as US sanctions against Iran looked set to tighten supply, but futures remained lower for the week as investors anxious that global trade disputes could slow economic growth and hurt demand for energy.

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