Trump authorizes doubling of steel, aluminum tariffs on Turkey

Berat Albayrak will issue a new economic plan today

Wider concerns about President Erdogan's expanding powers, especially over monetary policy, have taken chunks out of the value of lira this year.

World stock markets fell Friday, particularly in Europe, as investors anxious about the financial stability of Turkey, where the currency has nosedived.

Iran has also suffered from a major tumbling of its currency this year partly over reimposition of U.S. sanctions after Trump abandoned a 2015 nuclear deal.

"The traditional solutions as interest rates' hikes will not tackle this issue", Abu Basha explained, saying that the tLira's plummet has a very deep geopolitical dimension, which caused the Turkish currency to lose about 50% of its value in 2018.

US President Donald Trump said on Friday he had doubled steel and aluminium tariffs on Turkey, adding to pressure on its troubled economy amid a diplomatic row with Washington.

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

"Emerging market economies move more aggressively; the knee-jerk reaction is stronger". Financial upheaval there risks further destabilizing an already volatile region.

In an opinion article published in the New York Times on Saturday, Erdogan wrote that Turkey and the USA had been strategic partners and North Atlantic Treaty Organisation allies for the past six decades and that his country had repeatedly come to America's aid.

President Trump's announcement Friday morning that he has authorized the doubling of tariffs on steel and aluminum imports coming from Turkey came in a tweet that noted, "Our relations with Turkey are not good at this time!".

Turkey's troubles, compounded by a new round of USA sanctions, are unlikely to cause any kind of permanent hit to United States markets or its economy, but it does offer two cautionary tales, one for President Donald Trump and the other for Federal Reserve Chairman Jerome Powell.

Although Erdogan struck a defiant tone, his foreign ministry called for diplomacy and dialogue to solve problems with Washington and Trade Minister Ruhsar Pekcan said "we implore President Trump to return to the negotiating table". He urged Turkish citizens to immediately exchange their gold and dollars for lira.

"This will be my people's response to those who have waged an economic war against us", he said.

The lira was trading at 5.95 to the dollar, a loss on the day of 7.5 percent.

"The United States slapped sanctions on two Turkish officials earlier this month over a detained American pastor who is being tried on espionage and terror-related charges". I hope we can soon get Pastor Brunson and other Americans released in a win-win fashion for both the U.S. and Turkey."Trump's move to double tariffs on Turkey was even praised by one of the president's most frequent Democratic critics".

Turkish media covered the latest tensions between Ankara and Washington, with pro-government daily Sabah saying on its front page that "the currency attack" was no different from the attempted July 2016 coup.

Speaking in the northeastern province of Gumushane, Erdogan repeated his call to sell dollars to support the lira.

Erdogan also appeared to allude to a "deadline" for handing over Brunson, although he did not name the United States as having set any such deadline or say precisely when it might have expired. It is host to a critical part of the Western alliance's missile defense system again Iran.

Writing on Twitter, Iran's Foreign Minister Mohammad Javad Zarif also accused Washington of an "addiction to sanctions and bullying".

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