Turkey's Erdogan Threatens Boycott of US Goods

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The country's Official Gazette announced on Wednesday the higher tariffs on a series of products including rice, vehicles, alcohol, coal and cosmetics.

Turkey has doubled tariffs on some United States imports, such as passenger cars, alcohol and tobacco, in what its vice president said was a response to deliberate USA attacks on the Turkish economy.

Investors are anxious not only about Turkey's souring relations with the US, a longtime North Atlantic Treaty Organisation ally, but also Turkish President Recep Tayyip Erdogan's economic policies and the country's high debt accumulated in foreign currencies.

President Erdogan has accused the U.S. of trying to "bring Turkey to its knees through threats over a pastor".

The call for a boycott appears to be Erdogan's answer to the USA decision to double tariffs on Turkish steel and aluminum imports. It was unclear how he planned to enforce such a boycott.

Although he was released to home detention, Brunson faces a prison sentence of up to 35 years if he is convicted on both counts at the end of his ongoing trial.


Experts say any impact of the anticipated call with the finance minister is temporary, and markets need more than technical remedies like the central bank's promise to provide emergency liquidity to banks, or the government's promise not to seize dollar-denominated bank deposits.

For one more time, Erdogan called on Turks to convert USA dollars into lira in order to "maintain the dignity" of the currency.

Turkey's banking sector remained strong and liquid and the measures taken to support the market have started to show impact, Turkey's Akbank chief executive said and added there were was no withdrawal of deposits.

The Turkish national currency, the lira, has been plunging as Washington doubled its tariffs on aluminum and steel imports from the country to 20 and 50 percent, respectively.

Turkey on Wednesday said it was hiking tariffs on imports of several key U.S. products in retaliation for American sanctions against Ankara, as a bitter dispute between the two allies that sent the Turkish lira into freefall showed no sign of ending.

An evangelical from North Carolina, he has been held in Turkey for almost two years over alleged links to the outlawed Kurdistan Workers Party and the Gulenist movement, which Turkey blames for a failed coup in 2016. U.S. officials say National Security adviser John Bolton had met with the Turkish ambassador to Washington on Monday.


On Wednesday, the lira traded at 6.4125 to the USA dollar, weakening from a close of 6.3577 a day earlier.

"Significantly more than just official promises of action are needed to exit the current crisis", said Andy Birch, principal economist at IHS Markit, calling for "a sharp central bank rate rise".

The appeal document seen by Reuters said the court should halt any unlawful political interventions and lift judicial control provisions imposed on Andrew Brunson.

"Sudan and Turkey are witnessing a time of very special relations", he said.

The US has also been irritated by Turkey's decision to buy a Russian missile defence system earlier this year, while Ankara has hit out at Washington's backing of Kurdish rebels in Syria.


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