White House denounces Turkey tariffs on USA products

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Turkey's Finance Minister Berat Albayrak promised on Thursday the country will emerge "stronger" from the currency crisis sparked by a diplomatic spat with the United States, and ruled out an International Monetary Fund bailout.

Qatar said it would provide "a host of economic projects, investments and deposits" worth $15 billion to support Turkey's economy.

BNP Paribas/TEB strategist Erkin Isik said Trump's comments and worries over further sanctions were likely to keep markets under pressure on Friday.

"Escalating the use of Section 232 tariffs on imports from Turkey poses serious risks for the United States", Brilliant said.

And Turkey is pushing back hard, sharply raising tariffs on a range of American goods in retaliation to the tariffs imposed last week by President Trump.

The embattled currency, which has fallen by 40% this year amid a lack of interest rate hikes to control inflation, fell to around 5.86 to the dollar - continuing its recovery from a record low of 7.23 on Sunday.

President Donald Trump said during a Cabinet meeting at the White House on Thursday that Turkey has "not proven to be a good friend" to the U.S. He complained that his administration secured the release of a Turkish citizen from an unnamed country on Turkish President Recep Tayyip Erdogan's behalf.

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Treasury Secretary Steven Mnuchin suggested during a cabinet meeting on Thursday that the next spiral of tit-for-tat sanctions was coming soon, deepening a spat that has rattled financial markets, if Andrew Brunson is not released by Turkey.

However, the currency market's reaction to his conference call - in which he also said Turkey had no plans to seek help from the International Monetary Fund or impose capital controls to stop money flowing overseas - was measured.

Despite the political tensions, the lira rebounded 6 percent on Wednesday, strengthening to about 6.0 to the dollar.

Mr Trump has repeatedly asked for Brunson's release.

And the day earlier, two Greek soldiers held by Turkey since March for illegally crossing the border were also freed. Two sources with knowledge told CNN that the move stemmed from Trump's frustration over Brunson's detention. He is scheduled to appear before a court in October for his third hearing after the court rejected an appeal for his release in a July 18 hearing.

Mr Erdogan has said Turkey is the target of an economic war, and made repeated calls for Turks to sell their dollars and euros. On Tuesday, he said Turkey would boycott US electronic products.

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