Turkey currency crashes as Trump doubles metals tariffs

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On Friday, President Trump announced that he will double America's metal tariffs on Turkey - despite the fact that he has no good reason for doing so. Trump wrote on Twitter.

The president has declared that American importers' reliance on foreign metals poses a national security risk to the USA, and he also has increased the cost of these imports on Japan, Turkey and members of the European Union, the paper reported.

Investors have become increasingly concerned with the faltering Turkish economy, its central bank's willingness to respond to the downturn and the impact it could have on global financial markets, according to multiple reports. Trump wrote. "Aluminum will now be 20% and Steel 50%".

The Turkish lira plunged 20% Friday after President Trump announced he would be doubling the import tariff on metal produced in that country, sending Turkey's currency to a record low against the U.S. dollar.

TURKS have been hitting bureau de changes, after being ordered to sell their gold and dollars to support the crumbling Lira.

The lira was trading at 5.95 to the dollar, a loss on the day of 7.5 percent.

Paul Greer at Fidelity International said dramatic interventions were now needed as Turkey faced a "downward spiral" of investor confidence.

Turkey's financial crisis and further USA pressure spurred more concern among investors as fears appeared to spread to American markets.

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 on terrorism charges.

Hoping to put pressure on the North Atlantic Treaty Organisation ally to free the pastor, the White House sanctioned two top Turkish government officials.

The two countries are also divided over the detention of three locally employed US consular staff, Washington's sanctions on Iran, Turkey's plans to buy a Russian missile defense system, and their military interventions in Syria.

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But Aykan Erdemir, of the Foundation for Defense of Democracies, said Mr Trump's tariffs announcement comes "at the worst possible time for Mr Erdogan" and fits with U.S. strategy to increase pressure on Ankara until Mr Brunson is released.

"The dollar can not block our path".

One of the triggers of the turmoil has been a standoff with the USA over a detained American pastor that Turkey, a North Atlantic Treaty Organisation ally, has put on trial for espionage and terror-related charges linked to a failed coup attempt in the country two years ago.

The lira tumbled about 10 percent on Friday to another record low as investors anxious about Erdogan's unorthodox economic policies and USA sanctions.

"I would say we would define progress as Pastor Brunson being brought home", Nauert said. "If they have their dollar, we have the people, we have Allah".

Mr Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fuelling economic growth.

Markets are deeply concerned over the direction of domestic economic policy under Erdogan with inflation at almost 16 percent but the central bank reluctant to raise rates in response.

A plunge in the Turkish lira rocked global equities and emerging markets on Friday and fear of more turmoil sent investors scurrying for safety in assets like the yen and US government bonds.

"This is a domestic and national struggle".

Erdogan and his newly appointed finance minister, Berat Albayrak, are due to speak at 2 p.m. local time Friday. As the currency drops, Turkish companies and households with debt in foreign currencies see their debts expand.

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