Turkey increases tariffs on US goods amid economic tensions

Turkey has increased tariffs on selected US imports as a response to what the Turkish government claims is a deliberate US attack on the Turkish economy.

Turkish Vice-President Fuat Oktay took to Twitter to announce a 140 per cent rise in the import tax on US alcohol, 120 per cent on cars and 60 per cent on tobacco, the Straits Times reports. Import taxes on cosmetics, rice and coal have also doubled.

According to the Financial Times the Lira was volatile after the announcement, but slightly extended the recovery it started on Monday after central bank measures were announced. Despite this, the Lira has lost approximately a quarter of its value this month and borrowing costs are at record highs. Markets remain concerned over Erdogan’s influence over the economy and his reluctance to increase interest rates despite rising inflation rates, which some estimates say may have reached 100 percent, according to CNCB.

Erdogan maintains that Turkey will not ‘bow down’ to Trump’s demands. As reported in the Jakarta Post, he has repeatedly urged Turkish citizens to sell their US dollars and Euros to strengthen the Lira, as well as stop buying iPhones and use Samsung or Turkish-made Venus Vestel electronics instead.