Erdogan warns Trump: Turkey does not respond to threats

The lira went into free-fall sinking more than 10 percent

The lira went into free-fall sinking more than 10 percent

President Donald Trump announced Friday that he is doubling tariffs on steel and aluminum from Turkey amid heightened tensions between the two nations.

The lira, Trump noted on Twitter, "slides rapidly downward against our very strong Dollar!"

Turkish Presidential Spokesman Ibrahim Kalin earlier wrote in the Daily Sabah newspaper that the USA runs the risk of losing Turkey as its ally.

In response, President Trump tweeted in July, "The United States will impose large sanctions on Turkey for their longtime detainment of Pastor Andrew Brunson, a great Christian, family man and wonderful human being". "Repeated efforts to communicate to the United States administration that none of the stated criteria driving America's tariffs are applicable to Turkey have thus far proven fruitless", he said. Mr. Trump tweeted Friday morning.

Erdogan on Friday held telephone talks with Russian President Vladimir Putin, discussing economic and trade issues as well as the Syria crisis.

"These are the bullets, cannonballs and missiles of an economic war waged against our country", he said.


"If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks", he said during an address to supporters. "It is a national fight", he told a crowd in the northeastern city of Bayburt.

But Erdogan, who had remained unusually silent until now as the lira crisis mounted, urged Turks to take matters into their own hands.

"President Erdogan's strengthened powers under the new presidential system have made it increasingly uncertain whether policymakers will be able to act to stabilize the economy", William Jackson, the chief emerging markets economist at Capital Economics in London, said.

The Lira touched a historic low versus the U.S dollar.

The Turkish lira hit a record low of 6.24 per dollar on Friday, before recovering to 5.92 _ still down a whopping 7 per cent on the day.

A meeting on Friday unveiling a new economic approach by Turkey's finance minister Berat Albayrak, Erdogan's son-in-law, did little to offer support for the free-falling lira as investors sought concrete steps such as an interest rate hike to restore confidence. According to a source in Erdogan's office, the two said they were pleased with the positive direction in their economic and trade ties and with the ongoing cooperation in the energy and defense sectors.


"When it comes to cornering Turkey to extract certain concessions that undermine our sovereign rights, it is a whole another story".

At the U.N. General Assembly a year ago, Trump called Erdogan a "friend" who got "very high marks" for how he runs the country.

"Aluminum will now be 20% and Steel 50%". He denies the charges.

Turkey's financial crisis and further US pressure spurred more concern among investors as fears appeared to spread to American markets.

Trump's "jubilation in inflicting economic hardship on its North Atlantic Treaty Organisation ally Turkey is shameful", Zarif wrote on Twitter.

"The entire Turkish public is against USA policies that disregard Turkey's legitimate security demands". The US responded by imposing sanctions on Turkey and threatening more. The president, who says a shadowy "interest rate lobby" and Western credit ratings agencies are attempting to bring down Turkey's economy, appealed to his countrymen's patriotism. He seems to see Turkey's collapsing currency not as an existential threat to their economy they are trying to forestall, but rather as something they actively want to try to make their exports more competitive. Hard currency debt issued by Turkish banks suffered similar falls.


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