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12 August 2018, 05:01 | Glen Norman
Trump Doubles Tariffs On Steel, Aluminum From Turkey
Relations between Washington and Turkish President Recep Tayyip Erdogan also have worsened because of the detention of three locally employed U.S. consular workers, trade matters and differences over Syria. "Turkey is an important strategic partner militarily and economically".
Turkey and the United States squabbled last week over Turkey's failure to free a US pastor named Andrew Brunson from house arrest while he awaits his trial on terrorism charges. "Relations with countries who behave like this have reached a point beyond salvaging", said Erdogan, who warned of "economic war".
"We know very well that the issue is not the dollar, the euro or gold. Threats, sanctions and bullying against Turkey will not work", he said.
"We are knowledgeable with justice and law", Erdogan said in his address in the Black Sea province of Ordu on Saturday.
"Also completely underestimated is Turkey's capacity to effectively shut down everything that happens in Brussels if they want to, because Brussels works on consensus and nothing, literally nothing happens without consensus", he said.
In Rize, Erdogan said the U.S. would pay a price by challenging Turkey for the sake of "petty calculations", denouncing Washington for declaring "economic war on the entire world" and holding countries "for ransom through sanction threats".
The worsening diplomatic spat between the two countries sent the lira down 16% against the dollar on Friday.
Turkey says doubled tariffs on Turkish steel and aluminium announced by US President Donald Trump are against the rules of the World Trade Organisation (WTO). I am calling on those in America again.
The latest escalation between Ankara and Washington was denounced by the Turkish press, with pro-government daily Sabah saying "the currency attack" was no different from the attempted coup of July 2016.
His tone echoed that of a speech given on Thursday when he told supporters that "if they have dollars, we have our people, our righteousness, and our God".
Citigroup, the major United States bank that draws the most revenue internationally, fell 2.4 per cent as of 4:15pm in NY.
U.S. stocks fell Friday amid the geopolitical concerns that pushed the Turkish lira to the record low against the dollar. Trump's public announcement of tariffs will only fan Erdogan's economic warfare narrative, which puts the source of Turkey's economic woes outside its borders.
He also said it was a pity that Washington chose Brunson over Turkey, its partner in North Atlantic Treaty Organisation, and in an opinion piece in the New York Times, he warned the United States that Ankara had other alternatives as allies.
"The US runs the risk of losing Turkey as a whole".
"Do not worry!" He said Turkey was not afraid of "threats" and added Turkey had "alternatives" for economic cooperation in many places "from Iran, to Russian Federation, to China and some European countries".
Turkey also warned there would be retaliation against the US' imposition of the tariffs. "Hopefully we will overcome this disaster and we will also successfully overcome this economic war", Erdogan said.
US President Donald Trump wrote on Twitter late last month that his country "will impose large sanctions on Turkey for their long time detainment of Pastor Andrew Brunson".
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