Turkey braces for hard times amid currency crisis, U.S. spat

Using different angles, the papers - include the New York Times, Wall Street Journal, and Washington Post - implied that Turkey and its President Recep Tayyip Erdogan will move closer to Russian Federation, also claiming the bilateral rift between Ankara and Washington could stall progress against the Daesh terror organization.

Turkey doubled tariffs on some US imports including alcohol, cars and tobacco on Wednesday in retaliation for USA moves, but the lira rallied further after the central bank's liquidity moves had the effect of supporting the currency.

Turkish Foreign Minister Mevlut Cavusoglu struck a somewhat conciliatory note, saying Turkey was ready to discuss its issues with the United States as long as there are no threats.

The row with Washington has helped drive the lira to record lows, with the currency losing more than 40 percent of its value against the USA dollar this year, prompting central bank liquidity moves to support it.

The tariffs come a day after President Recep Tayyip Erdogan said Turkey would boycott US electronic goods, singling out iPhones.

Analysts question the effectiveness of any Turkish boycott of USA goods and view Turkey's tit-for-tat taxes - imposed Wednesday on American exports, including cars, tobacco and alcohol - as mostly symbolic because they have relatively little value to a global trade giant engaged in similar disputes with China and other major economies.

Tariffs were also increased on cosmetics, rice and coal.

The White House on Wednesday condemned Turkey's doubling of tariffs on U.S. imports in response to Washington's moves on imports of Turkish goods.

Turkey had already retaliated against Trump's first round of tariffs on steel and aluminum imports that were imposed on the European Union in late May, ending a two-month exemption.

The emir of Qatar also arrived in Turkey on Wednesday on a "working" visit aimed at strengthening mutual cooperation.


Talks between Washington and Ankara in recent days to resolve the standoff have foundered.

Washington warned more economic pressures may be in store for Turkey if it refuses to release Mr. Brunson. A Finance Ministry official said so far 3,000 people have signed up for the call.

"We predict that measures that our institutions will continue to take will result in an even stronger normalization of the Turkish economy", Kalin said.

The case now lies at the heart of a bitter row between North Atlantic Treaty Organisation allies Turkey and United States, who have been growing apart for years over a series of disagreements on Syria, their perception of security threats and defense deals.

As NPR explained in a primer on the dispute, much of the ill will shared by Turkey and the USA stems not only from the back-and-forth on tariffs, but also from a diplomatic dust-up centered on two men of faith.

"The tariffs are specific to national security", she said.

The paper said the feud between Turkey and the US was "escalating".

A court in Izmir rejected the appeal, but a higher court would review the appeal, the report said.

President Erdogan said on Tuesday that Turkey was taking measures to stabilise its economy and should not "give in to the enemy" by investing in foreign currencies.


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