Turkish relations spiraling amid tit-for-tat penalties over detained pastor

Turkish relations spiraling amid tit-for-tat penalties over detained pastor

Erdogan on Tuesday said Turkey would boycott U.S. electronic goods like iPhones, even though he has himself been photographed repeatedly using the product himself.

As President Recep Tayyip Erdogan intensified a diplomatic feud with his USA counterpart Donald Trump with a spate of new import tariffs, the nation's banking regulator published new rules that have so far succeeded at lifting the lira off record lows.

In his televised speech yesterday, Erdogan vowed that Turkey will "boycott U.S. electronic goods". He showed no signs of backing down in the stand-off and suggested that Turkey would stop procuring US-made iPhones and buy Korean Samsung or Turkish-made Vestel instead.

Turkey on Wednesday doubled tariffs on some US imports, including alcohol, cars and tobacco in retaliation for USA moves.

On Tuesday, the lira recovered some ground, trading at 6.3300 to the dollar at 1947 GMT, up some 9% from the previous day's close and having earlier touched 6.2995.

Opening the segment, Holt laid out the situation: "Turkey is accusing the US of trying to tank its economy after President Trump ordered new sanctions".

Just days after President Trump tweeted his decision to double tariffs on Turkish steel and aluminum, Turkey has announced that it, too, is ratcheting up retaliatory tariffs.

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.

"This visit, at the same time, is an indicator that Qatar stands with Turkey", Ibrahim Kalin, a spokesperson for the Turkish president, told reporters at a press conference on Wednesday.

Like other emerging markets, Turkish companies borrowed heavily in dollars when United States interest rates were low, fuelling a consumer boom that is running out as the dollar strengthens.

The currency TRYTOM=D3 has lost almost 40 percent against the dollar this year, driven by worries over President Tayyip Erdogan's growing influence on the economy and his repeated calls for lower interest rates despite high inflation.

His comments have so far failed to quell a crisis that economists say is largely self-inflicted, owing to an overheated economy and the debt exposure of Turkey's companies and banks.

On the eve of the 10th anniversary of the Lehman Brothers crisis, one must hope that US policymakers gain the insight to appreciate the real risks that a highly indebted country like Turkey could pose to the USA and global economies.

"While the lira is stabilising, investors are still concerned that the crisis will spread to other emerging economies and currencies", said Hikaru Sato, senior technical analyst at Daiwa Securities".

The move comes amid increased tension between the two North Atlantic Treaty Organisation allies over Ankara's imprisonment of a pastor and other diplomatic issues, which has sent the lira tumbling to record lows against the dollar.

He is scheduled to appear before a court in October for his third hearing after the court rejected an appeal for his release in a July 18 hearing.

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