Trump Announces 'Doubling' Of Tariffs On Steel, Aluminum From Turkey

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The lira has always been falling on worries about Mr Erdogan's influence over monetary policy and worsening relations with the United States.

Investors have become increasingly concerned with the faltering Turkish economy, its central bank's willingness to respond to the downturn and the impact it could have on global financial markets, according to multiple reports.

Iran has also suffered from a major tumbling of its currency this year partly over reimposition of USA sanctions after Trump abandoned a 2015 nuclear deal.

Aksoy also said Turkey wants to solve the issues through diplomacy, dialogue, good intentions and bilateral understanding.

"Emerging market economies move more aggressively; the knee-jerk reaction is stronger". Financial upheaval there risks further destabilising an already volatile region.

A financial shock wave ripped through Turkey on Friday, when its currency nose-dived on concerns about its economic policies and a dispute with the US, which President Donald Trump stoked further with a promise to double tariffs on the North Atlantic Treaty Organisation ally.

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The currency's drop — 41 percent so far this year — is a gauge of fear over a country coming to terms with years of high debt, worldwide concern over Erdogan's push to amass power, and a souring in relations with allies like the U.S.

"Shame on you, shame on you", he said, directing his remarks at Washington.

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira". On Friday, he said the country had to take steps in answer "to those who have waged an economic war against us". "Look at what we were 16 years ago and look at us now".

Washington and Ankara are at odds over the detention of U.S. evangelical pastor Andrew Brunson on terrorism charges in Turkey.

"This treatment by America of its strategic partner has annoyed us, it has upset us", Mr Erdogan said. The lira fell further as Erdogan spoke.

The latest escalation between Ankara and Washington was denounced by the Turkish press, with pro-government daily Sabah saying "the currency attack" was no different from the attempted coup of July 2016.

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The sides held talks in Washington this week but failed to resolve the spat.

Reuters Turkey's president, Recep Tayyip Erdogan, listens during a news conference with British Prime Minister Theresa May in London, U.K., May 15, 2018.

"Aksoy says Turkey "always backs the resolution of issues through diplomacy, dialogue, goodwill and mutual understanding", but would retaliate for Trump's decision".

"The US and Turkey are breaking up". Much to the opposition of members of Congress on both sides of the aisle and other member nations of NATO, Turkey announced plans to acquire a Russian missile defense system.

Writing on Twitter, Iran's Foreign Minister Mohammad Javad Zarif also accused Washington of an "addiction to sanctions and bullying".

U.S. support for Kurdish rebel groups fighting Islamic State fighters in northern another major difficulty, given Turkey's battle against a Kurdish insurgency in its own country.

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