President Donald Trump tweeted Friday that he authorized a doubling of steel and aluminum tariffs on Turkey amid a growing diplomatic dispute between the two countries that is causing a currency crisis for Turkish President Recep Tayyip Erdogan, CNBC informed.
“I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!” Trump wrote.
Losses in the the Turkish lira deepened on Trump’s tweet, falling as much as 14 percent lower vs. the U.S. dollar in Friday trading.
The currency was already reeling Friday after comments from President Erdogan, who called for citizens to convert their foreign currency holdings into the local lira. So far there has been no confirmation to CNBC of the new tariff policy from the United States Department of Commerce.
Late Thursday, and prior to Trump’s tweet, Erdogan said he would stand up to pressure from the United States.
“There are various campaigns being carried out. Don’t heed them,” Erdogan said Thursday. “Don’t forget, if they have their dollars, we have our people, our God. We are working hard. Look at what we were 16 years ago and look at us now,” Erdogan told supporters.
The brewing dispute comes after a Turkish delegation returned from Washington with little to no progress on the detention of U.S. evangelist pastor Andrew Brunson, who is charged with supporting a group blamed for an attempted coup in 2016.
Last month, Trump threatened to slap “large sanctions” on the country if it refuses to free Brunson. The U.S. then announced on Aug. 1 sanctions on Turkey’s justice and interior ministers, prohibiting U.S. citizens from doing business with them.
The increase in the metal levies also follows Trump’s decision earlier this year to impose tariffs of 25 percent on imported steel and 10 percent for imported aluminum in an effort to protect American business.
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