Turkey retaliates against Trump tariffs, hiking fees on U.S

Turkey retaliates against Trump tariffs, hiking fees on U.S

Turkey retaliates against Trump tariffs, hiking fees on U.S

"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", Maggio said.

Apple has 22 percent of the smartphone market in Turkey, where 11.4 million units were sold a year ago, according to Ramazan Yavuz, research manager at IDC consultancy company.

He also described spreading false news about the economy as treason and recent USA actions as a stab in the back against Turkey.

A treasury desk trader at one bank said this "development showed relations with the European Union could recover while tense relations continue with the USA".

The government announced the tariffs "under the principle of reciprocity", following sanctions imposed by Washington over the detention of an American pastor, which sent the lira tumbling to record lows against the dollar.

Markets have been concerned by Erdogan's influence over the economy and his resistance to interest rate increases to tackle double-digit inflation.

"That Turkish support for Qatar during the stand-off with Saudi Arabia finally paid off", Tim Ash, a senior emerging-market strategist at BlueBay Asset Management LLC in London, said by email. By driving up short-term borrowing costs, this makes it less appealing for investors, like hedge funds, to borrow liras on the offshore swap market so they can bet against, or short, it. He said that was likely to happen by the end of business on Wednesday.

"Significantly more than just official promises of action are needed to exit the current crisis", said Andy Birch, principal economist at IHS Markit, calling for "a sharp central bank rate rise".

Turkey has been rocked in recent days by a sharp decline in the value of its lira after US President Donald Trump tweeted last Friday that Washington was doubling aluminium and steel tariffs for Ankara.

Qatar has pledged $15 billion of direct investment in Turkey amid turbulence in the nation's markets following a spat with the U.S.

The NATO allies have been at loggerheads over a wide range of topics, including diverging interests in Syria, Ankara's ambition to buy Russian defence systems and Andrew Brunson, a pastor on trial for terrorism charges.

A court meanwhile rejected an appeal for the release of American pastor Andrew Brunson - whose detention for nearly two years sparked the crisis - leaving no immediate solution to the Turkey-US row in sight.

A higher Turkish court was still considering the appeal and Brunson's lawyer, Ismail Cem Halavurt, told CBS News on Wednesday that he would not consider the appeal formally rejected until the higher court issues it's ruling.

White House Press Secretary Sarah Huckabee Sanders said a further deterioration could be averted if Erdogan agrees to let Brunson go.

Investors are anxious not only about Turkey's souring relations with the USA, a longtime North Atlantic Treaty Organisation ally, but also Turkish President Recep Tayyip Erdogan's economic policies and the country's high debt accumulated in foreign currencies.

Top U.S. dailies have published stories trying to deflect from Turkey announcing on Tuesday a boycott of American electronic products, focusing instead on other aspects of the bilateral row.

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