Turkish lira plunges as Trump hits Ankara with increased tariffs
US President Donald Trump's tweeted promise to double tariffs on steel and aluminum has pushed Turkey's currency into yet another tumble.
Ankara’s rocky relations with Washington took a further hit as President Donald Trump lobbed fresh salvos via Twitter against Turkey, plunging the sagging Turkish lira to new lows against the dollar. The Turkish currency shed about 17% of its value in a single day.
Trump struck a vengeful note, announcing, “I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong our very strong Dollar!” He added, “Our relations with Turkey are not good at this time!”
The ripple effects of Turkey’s spiraling currency crisis was felt globally as the Dow Jones Industrial Average and the S&P 500 fell 0.8% and 0.5%, respectively, following Trump’s tweet. In Europe, where exposure to Turkey is far higher, Germany’s DAX fell by 1.7% and France’s CAC by 1.2%.
Turkey’s ever-combative President Recep Tayyip Erdogan vowed to not bow to economic pressure. Speaking in the northeastern province of Gumushane, Erdogan said, “Apparently, those who believe they can force us to capitulate don’t know [our] people at all.” Erdogan has appealed to the people to convert their dollars to liras, saying Turkey is in the midst of an "economic war” with the West.
