Trump doubles tariffs on Turkish steel and aluminum, says relations 'not good'

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Washington is in a standoff with Ankara over the imprisonment and house arrest of American pastor Andrew Brunson. Turkey wants Brunson to stand trial. In particular, were already imposed personal sanctions on the Turkish Ministers of justice and internal Affairs.

A Turkish delegation visited Washington for talks this week but left with no signs of a breakthrough.

This great upheaval is also thought to have been caused by the downward turn in U.S.

In a separate opinion piece in the pro-government newspaper Daily Sabah, Erdogan's spokesman Ibrahim Kalin said Turkey's efforts to solve the crisis with diplomatic methods have been dismissed by the Trump administration, warning that Washington might completely lose Ankara as an ally.

Turkish President Recep Tayyip Erdogan addresses his supporters in Bayburt, Turkey, Aug. 10, 2018. And what he did say Friday morning could weigh on global markets for some time to come.

The slump is attributed to the tensions with the U.S. and concerns about President Recep Tayyip Erdogan's control of monetary policy. "Don't heed them", Erdogan said.

He appeared to blame foreigners for trying to hurt Turkey, saying: "This will be my people's response against those waging an economic war against us".

The Turkish president alleged Western powers are seeking to oust him from power through the creation of a financial crisis, after failing to so during a 2016 coup attempt.

He added: "Relations with countries who behave like this have reached a point beyond salvaging".

Turkey is also frustrated at USA unwillingness to extradite Turkish cleric Fetullah Gulen, who Erdogan accuses of staging a failed 2016 coup attempt.

According to the Capital Economics consultancy, the plunge in the lira risks putting further pressure on the banking sector in Turkey due to the scale of the credit boom and one third of bank lending being denominated in foreign currencies.

It's an awkward triangle, given that Turkey is a Nato member, Russian Federation is Nato's number one threat and the organisation is obliged to defend any member that is attacked.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks". This is a national struggle.

"Those who assume they can bring us to our knees through economic manipulations don't know our nation at all", he said. The lira fell further after Trump's tweet. As the currency drops, Turkish companies and households with debt in foreign currencies see their debts expand. "It will inevitably push Turkey towards the Russian and Iranian orbit and I think even raises questions over Turkey's North Atlantic Treaty Organisation membership".

The Turkish president his indicated possible support from Beijing and Moscow, but analysts are skeptical, given the scale of support the Turkish economy needs.

He declared: "Our relations with Turkey are not good at this time!".

In a separate opinion piece in the pro-government newspaper Daily Sabah, Erdogan's spokesman Ibrahim Kalin said Turkey's efforts to solve the crisis with diplomatic methods had been dismissed by the Trump administration, warning that "the USA runs the risk of losing Turkey" as an ally. "During this period, Turkey has set records in its exports, production and employment", Erdogan said.

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