United States tariffs hike adds to Turkey's economic problems

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President Trump ordered a doubling of USA tariffs on steel and aluminum imports from Turkey Friday, escalating a diplomatic spat with a key North Atlantic Treaty Organisation ally.

US President Donald Trump has offered talks on a "more comprehensive deal" but Iran has baulked at negotiating under the pressure of sanctions and has instead leant on its increasingly close ties with fellow US sanctions targets Turkey and Russian Federation.

Turkish market shares of the total Egyptian exports is about 5%, which is a very modest share, said Mohamed Abu Basha, head of macroeconomic analysis at the Cairo-based investment bank EFG-Hermes, noting that the Turkish Lira slump is a big issue, which Turkish authorities will find huge difficulties to deal with.

The Turkish lira briefly dropped to a record low on Friday, amid concern over the economic policies of President Recep Tayyip Erdogan, as well as the diplomatic row with the U.S.

A meeting on Friday unveiling a new economic approach by Turkey's finance minister Berat Albayrak, Erdogan's son-in-law, did little to offer support for the free-falling lira as investors sought concrete steps such as an interest rate increase to restore confidence.

"I call out to those in the United States. Exit of funds from the Turkish financial markets can be an opportunity for the Egyptian economy as a competitive market in the same region".

"Shame on you, shame on you", he said in remarks directly addressed to Washington.

A delegation from Turkey's Ministry of Foreign affairs travelled this week to the United States to attempt, to no avail, to reduce tensions between the two countries.

U.S. State Department spokesperson Heather Nauert said Thursday that Washington "would define progress as Pastor Brunson being brought home". "You impose sanctions on our Halkbank ... and then you expect different treatment from Turkey?" said Erdogan, in a second speech in the same city.

"We will give our answer, by shifting to new markets, new partnerships and new alliances, to the one who waged an economic war against the entire world and also included our country", he said.

Erdoğan had warned Saturday that Turkey would start looking for new friends if the USA continued with its unilateral actions against a North Atlantic Treaty Organisation ally, in a diplomatic row that has sent Ankara and Washington relations to a new low.

Turkish President Recep Tayyip Erdogan on Saturday warned the United States that it risked losing a "strategic partner" due to demands made by the USA government that Turkey release an American pastor who was arrested on terrorism charges.

President Recep Tayyip Erdogan also said that Turkey would prepare to trade with its key partners in local currencies so that it and its allies would not be dependent on the dollar.

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It was Iran's most explicit rejection of talks to date, after much speculation that economic pressure would force its leaders back to the table with Washington or at least to engage in backroom discussions in NY. U.S. stocks were also rattled. Gulen has denied the allegation.

"If they have the dollar, we have Allah", he said.

After Mr. Brunson had been in jail for nearly 20 months, a court in July ordered him to be moved to house arrest.

His cause resonates with Mr Trump's Christian conservative supporters.

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