President Donald Trump said on Friday he had authorized higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminum and 50 percent one on steel, as tensions mount between the two North Atlantic Treaty Organisation allies over Ankara's detention of an evangelical pastor and other diplomatic issues.
He also said it was wrong of the U.S. to try to bring Turkey into line with threats, a day after Trump doubled tariffs on steel and aluminium imports from Turkey.
Donald Trump said Friday his administration had doubled steel and aluminum tariffs on Turkey, imposing a 20 percent duty on aluminum and a 50 percent levy on steel.
Speaking to a crowd in his hometown of Rize on Saturday, Erdogan addressed the recent United States decision to sanction two Turkish officials over the detention of American pastor Andrew Brunson, who has been held in Turkey since 2016 over claims that he was linked to the failed coup attempt in July of that same year.
U.S. -Turkish tensions began to escalate last week, with Trump targeting two Turkish ministers with sanctions over the detention of U.S. pastor Andrew Brunson.
Trump's "jubilation in inflicting economic hardship on its North Atlantic Treaty Organisation ally Turkey is shameful", he wrote.
"Shame on you, shame on you", he said, directing his remarks at Washington.
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In an op-ed published in New York Times, Erdogan warned Washington not to risk its relations with Ankara, saying otherwise it would look for "new friends and allies".
Erdogan noted that Ankara has no intention of tolerating the situation when an economic war had been declared against the whole world, with pressure exerted on some countries, which are threatened with sanctions.
Through the early part of the morning, the Turkish Lira was down another 1.92% to 6.9585 against the Dollar, the continued slide gripping the global financial markets at a sensitive time, where an ongoing trade war with China, fresh sanctions on Iran and new sanctions on Russian Federation are already testing market resolve.
Andrew Craig Brunson, an evangelical pastor from Black Mountain, North Carolina, arrives at his house in Izmir, Turkey, July 25, 2018.
"Interest rates should be kept to a minimum because they are a tool of exploitation that makes the poor poorer and the rich richer", he said. All eyes are now on Turkeys President Erdogan, who is expected to speak shortly. In his speech in the northeastern city of Bayburt, Erdogan added that he would decisively defend the country against economic attacks.
North Atlantic Treaty Organisation uses the Incirlik Air Base in Turkey to fight against IS and there has been some domestic pressure on Mr Erdogan to close it. It is host to a critical part of the Western alliance's missile defence system against Iran.
Iran has also suffered a major tumbling of its currency this year partly over the reimposition of USA sanctions after Trump abandoned the 2015 nuclear deal.
Shares of European lenders also dropped, which according to the Reuters news agency was due to concerns about their Turkey exposure.