Search ForexCrunch

Turkish President Tayyip Erdogan announced on Tuesday plans to boycott US electronics in retaliation for tariffs from US President Trump that doubled levies against Turkish products, heightening  fears of contagion risk that could spread from Turkey to global marketplaces.

Key quotes

“The lira has lost more than 40 percent this year and crashed to an all-time low of 7.24 to the dollar on Monday, hit by worries over Erdogan’s calls for lower borrowing costs and by worsening ties with the United States, a major NATO ally.

It was supported by news of a planned conference call on Thursday in which the finance minister will seek to reassure investors concerned by Erdogan’s influence over the economy and his resistance to interest rate hikes to tackle double-digit inflation.

Erdogan says Turkey is the target of an economic war, and has made repeated calls for Turks to sell their dollars and euros to shore up the national currency.

“Together with our people, we will stand decisively against the dollar, forex prices, inflation and interest rates. We will protect our economic independence by being tight knit together,” he told members of his AK Party in a speech.

The United States imposed sanctions on two Turkish government ministers over the trial on terrorism charges of U.S. evangelical pastor Andrew Brunson in Turkey, and last week Washington raised tariffs on Turkish metal exports.

The White House said on Tuesday President Donald Trump was frustrated that Turkey had not released Brunson.

“The president has a great deal of frustration on the fact that Pastor Brunson has not been released as well as the fact that other U.S. citizens and employees of diplomatic facilities have not been released,” White House Press Secretary Sarah Sanders told a briefing.

A White House official said the United States was warning more economic pressures may be in store for Turkey if it refuses to release Brunson.”