Turkey slaps tariffs on some U.S. goods
$533 million move escalates feud amid currency crisis
ANKARA, Turkey — Turkey said Wednesday that it is increasing tariffs on some U.S. products, such as cars, alcohol and coal, a move that is unlikely to have much economic impact but highlights the deteriorating relations with the U.S. in a feud that has already helped trigger a currency crisis.
The Turkish government said tariffs on U.S. cars will be doubled to 120 percent while those on alcoholic drinks will be hiked by the same rate to 140 percent. Overall, the duties will amount to $533 million, a relatively small sum meant as retaliation for President Donald Trump’s recent decision to double tariffs on Turkish steel and aluminum.
The tariffs also come a day after President Recep Tayyip Erdogan said Turkey would boycott U.S. electronic goods, singling out iPhones. Though it was un- Pedestrians in Instabul pass a billboard advertising an iPhone, which President Recep Tayyip Erdogan singled out. clear howthe boycott would be enforced or encouraged.
Beyond the bluster of the two world leaders, the spat between the NATO allies has exacerbated a financial storm in Turkey. International investors have been put off by the country’s high levels of foreign debt and Erdogan’s refusal to allow the central bank to raise interest rates to support the currency, as experts say it should.
The currency drop is particularly painful for Turkey because it has accumulated a high debt in foreign currencies.
The Turkish lira has dropped to a series of record lows in recent weeks, having fallen 37 percent this year.
On Wednesday, Turkish officials said Qatar had pledged $15 billion of direct investments for Turkey, in a bid to help Turkey’s economy. The officials said Qatar’s Sheikh Tamin bin Hamad Al Thani pledged to “quickly implement” the investment package during a meeting with Erdogan in Ankara.
Presidential spokesman Ibrahim Kalin confirmed the pledge on Twitter, saying: “Turkish-Qatari relations are based on solid foundations of true friendship and solidarity.”
Also helping the Turkish currency were moves by Turkey to gain favor with European countries.
It decided to release two Greek soldiers from prison Tuesday. On Wednesday, Turkey then freed Amnesty International’s honorary chairman for Turkey, Taner Kilic, from prison pending the outcome of his trial on terror charges. And Erdogan held a phone call with German Chancellor Angela Merkel and planned to speak this week also with France’s Emmanuel Macron.
Investors seemed to focus on this and underlying economic problems over the exchange of tariffs with the U.S., which analysts said was unlikely to cause serious pain.
Ozgur Unluhisarcikli, director of the German Marshall Fund’s Ankara office, noted that Turkey buys 0.5 percent of all U.S. exports and most of that is civilian aircraft and weapons.
“This is just a symbolic gesture,” said Unluhisarcikli.
He added “So anything other than weapons purchases would not hurt the United States.”
Apple has 22 percent of the smartphone market in Turkey.
Washington has imposed financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey, as Trump tries to secure the release of Andrew Brunson, a 50-year-old American pastor being tried in Turkey on espionage and terrorismrelated charges.
On Wednesday, a court rejected an appeal for Brunson’s release from detention and for a travel ban against him to be lifted, the staterun Anadolu Agency reported.
A higher court however, was scheduled to review the appeal.
Although he was released to home detention, Brunson faces a prison sentence of up to 35 years if he is convicted on both counts at the end of his trial.