Yahoo Finance Turkey escalates trade dispute with US by raising tariffs
Turkey has said it will increase tariffs on imports of a range of US products, escalating a diplomatic and trade dispute that has roiled global markets and helped trigger a currency crisis.
Extra tariffs will be imposed on imports of products such as rice, cars, alcohol, coal and cosmetics, according to an announcement on the Official Gazette.
Fuat Oktay, Turkey's Vice President, said on Twitter that the tariffs on certain products were increased "within the framework of the principle of reciprocity in retaliation for the conscious economic attacks by the United States".
Despite Ankara ratcheting up tensions with the Trump administration, the crisis-hit lira continued to rally following its collapse to record lows. After a brief dip in Asian trading, the lira rebounded strongly for a second consecutive day on Wednesday, climbing a further 7.1pc. However, the lira still remains 38pc down against the dollar in 2018.
The tariffs announcement came as Asian shares fell in morning trade on Wednesday, with concerns about Turkey's financial crisis weighing on investor sentiment. European markets remained subdued while the FTSE 100 was flat after four days of declines.
Markets have "regained their cool towards Turkey" but the crisis won't be "swept under the carpet", LCG's Jasper Lawler warned.
"Not only is it unlikely that hostilities between Turkey and the US will simmer down quickly, but fundamentals are stacked against emerging markets right now as they struggle in a rising US interest rates climate."
