Turkish Lira Falls As Trump Doubles Metals Tariffs

Trump says via tweet that the tariff on aluminum imports will be increased to 20 percent and the tariff on steel imports will be raised to 50 percent as the Turkish Lira "slides rapidly downward against our very strong Dollar!"

Washington in response sanctioned two Turkish ministers and Trump on Friday announced it was doubling the tariffs on steel and aluminium imports from Turkey, saying relations with Ankara were "not good at this time".

"President Trump on Friday doubled steel tariffs on Turkey as its government battled the currency collapse".

In a statement, deputy White House press secretary Lindsay Walters said, "Section 232 tariffs are imposed on imports from particular countries whose exports threaten to impair national security as defined in Section 232, independent of negotiations on trade or any other matter".

Without naming countries, Erdogan said supporters of a failed military coup two years ago, which Ankara says was organised by a USA -based Muslim cleric, were attacking Turkey in new ways since his re-election two months ago.

The Brunson case has enraged the Evangelicals in the United States, who constitute a critical electoral base for Trump.

The United States has denied Turkey's request for deporting Fethullah Gulen, a USA -based Turkish cleric who Ankara says is the main perpetrator of the 2016 coup.

Trump tweeted that he had authorized the doubling of steel and aluminum tariffs "with respect to Turkey".

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira".

"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 real losers of decisions taken by the USA administration are producers, private sector, and exporters of both countries", the statement concluded.

The US was one of the top destination for Turkish steel exports in 2017, worth $1.1 billion.

Earlier this week, a Turkish delegation returned from Washington with no movement on the detention of American pastor Andrew Brunson, who is under house arrest in Turkey over terrorism charges. She called on Trump to return to the negotiating table, saying "this can and should be resolved through dialogue and cooperation". "This is a domestic and national struggle".

Kinder Morgan Inc, the second largest North American pipeline operator, had already ordered almost half of the specialized pipe needed for its Gulf Coast Express project from Turkish steel maker Borusan Mannesmann before the original tariff went into effect, spokeswoman Sara Hughes said. The entire Turkish public is against United States policies that disregard Turkey's legitimate security demands. As the lira falls in value, the debt becomes harder to pay.

Turkey's sovereign dollar-denominated bonds tumbled with many issues trading at record lows.

Treasury and Finance Minister Berat Albayrak on Friday also vowed sustainable and healthy economic growth as well as "strong struggle" against inflation, which now stands at close to 16 percent.

"We are moving forward with the project, but believe that imposing a tax on pre-existing orders is unjust, especially considering the specific materials we purchased overseas were not readily available in the U.S.", Willie Chiang, Plains' chief operating officer, said on Tuesday.