Published: Fri, August 17, 2018
Finance | By Gustavo Carr

Turkey's Erdogan hits back with retaliatory Sanctions

Turkey's Erdogan hits back with retaliatory Sanctions

Brunson's charges include spying for the PKK - listed as a terrorist group by both the USA and Turkey - and the Fetullah Terrorist Organization (FETO), the group behind the defeated coup attempt in Turkey of July 2016. "Given a United States president tends to do badly in his first mid-term election, he might do more on trade issues after the election".

American products remain widely used in Turkey, which is locked in a dispute with Washington over an American pastor being tried in a Turkish court and other issues.

iPhone owners in Turkey are smashing their mobile devices as a symbolic gesture of support for their government amid ongoing clashes and a strained relationship with the Trump administration.

The official says the White House thought it had a deal to secure Brunson's release last month, apparently referring to US pressure on Israel to release a Turkish citizen imprisoned there. Inflation has soared, hitting 16 per cent in July, and some estimates put it at more than 100 per cent now, owing in part to the currency crisis.

Explaining the new tariffs, Turkish Vice-President Fuat Oktay said the rises were ordered "within the framework of reciprocity in retaliation for the conscious attacks on our economy by the USA administration".

On August 10, Trump intensified the spat with Turkey over the detention in Turkey of USA evangelical pastor Andrew Brunson on terrorism charges by imposing higher tariffs on metal imports.

The United States warned Turkey on Thursday to expect more economic sanctions unless it hands over detained American pastor Andrew Brunson, as relations between the two countries took a further turn for the worse.

Tuesday night, Turkey announced new tariffs against the United States, the latest in the mounting tit-for-tat between the long-time allies. "He's an innocent man".

Trump has also authorized higher steel and aluminum tariffs against Turkey.

Qatar said it would provide "a host of economic projects, investments and deposits" worth 15 billion dollars to support Turkey's economy.

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Turkey also maintains a small military base in Qatar.

He was indicted on charges of having links with the outlawed Kurdistan Workers' Party and the Fethullahist Terrorist Organization, which Turkey accuses of being behind a coup attempt in 2016 to topple Turkish President Recep Tayyip Erdogan. Tuesday, Turkish President Recep Tayyip Erdogan called for a boycott of US electronics.

The state-run Anadolu Agency said the finance chief would address hundreds of foreign investors on Thursday.

The finance minister will seek to reassure global investors on Thursday in a conference call for which a ministry official said some far 3,000 people had signed up.

However, the central bank has defied calls from markets for rate hikes, raising concerns of interference from Mr Erdogan who is on record as describing himself as an "enemy" of higher interest rates.

The drop in the Turkish lira is attracting more interest from tourists, including last minute travelers, as well as prospective real estate buyers.

And the day earlier, two Greek soldiers held by Turkey since March for illegally crossing the border were also freed. "The central bank has not done this through a change in the benchmark rates, but they are squeezing liquidity, so the result is the same", he said.

Some are looking for a longer-term bargain - property. "This is very easy to resolve", the administration official said.

Erdogan and his French counterpart Emmanuel Macron agreed in a phone call Thursday to foster trade ties, a Turkish presidential source said.

The officials provided the information only on condition of anonymity, in line with rules.

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