Economy

Turkish Currency Improves Amid Increased Tariffs On US Imports

Turkish Currency Improves Amid Increased Tariffs On US Imports

"According to 2017 figures, the trade volume between the two countries was $600 million", Yurdakul said, adding there was potential for more.

On Aug. 1 relations between Ankara and Washington nosedived when the US imposed sanctions on two Turkish Cabinet ministers after Turkey refused to release an American pastor who faces terrorism-related charges in Turkey.

He noted that several countries, especially from Europe, supported Turkey against the additional USA tariffs. "The tariffs are specific to national security". He said that Russian Federation and Turkey have set a goal to switch to national currencies in mutual trade.

The lira slump is hitting global markets hard.

Erdogan revealed details of conversations held between the two countries last week, with Washington threatening sanctions if the pastor is not released, while speaking to supporters in the Black Sea coastal city of Trabzon.

Turkey's national airline and its main telecoms firm will halt advertising in USA media in response to the crisis in relations between the two allies, company officials said on Tuesday. It was not clear when the court would consider the appeal.

State media in Doha said Sheikh Tamim bin Hamad Al-Thani was travelling to Turkey for a "working visit".

Those consequences are US sanctions and a doubling of tariffs on Turkish steel and aluminum, announced by President Trump on Friday.

Brunson, 50, is being tried on espionage and terror-related charges, which he and the us government vehemently deny.

In a press briefing, White House spokesperson Sarah Sanders said, "The tariffs that are in place on steel would not be removed with the release of Pastor Brunson".

More news: USA newspapers push back against Trump's attacks on media

Turkish President Recep Tayyip Erdogan says his country will boycott US -made electronic goods amid a diplomatic spat that has helped trigger a Turkish currency crisis.

Almost 10 million people use US iPhones in Turkey, press reports said, adding that the amount paid for the products hit 7 billion dollars in 10 years.

"If they have the iPhone, there is Samsung elsewhere".

It was unclear how Erdogan meant to enforce the boycott.

Turkish lira crashed to an all-time low of 7.24 to the dollar on Monday, hit by worries over Erdogan's calls for lower borrowing costs and by worsening ties with the United States, a major North Atlantic Treaty Organisation ally. Hours later Turkey's President, Recep Tayyip Erdoğan, issued retaliatory tariffs on the United States.

The minister said Turkey will take steps in light of the free market to reduce companies' currency risk.

"We will implement a boycott against America's electronic goods", he said.

Earlier on Wednesday, White House spokesperson Sarah Sanders said the USA side would consider lifting sanctions that have been placed on Turkey if Ankara released Brunson and other detained US citizens.

While low interest rates inject money into the economy and can provide stimulus in times of crisis, rampant inflation undercuts these gains. And as the currency drops, that debt becomes so much more expensive to repay, leading to potential bankruptcies.