Turkey Doubles Tariffs on some US Imports, Turkish Lira Rallies

The US dollar is the strongest it's been in more than a year which could create problems for US companies which sell

The US dollar is the strongest it's been in more than a year which could create problems for US companies which sell

He suggested Turks would buy local or Korean phones instead, though it was unclear how the boycott would be enforced or encouraged.

At the weekend, Turkish President Recep Tayyip Erdogan said that Ankara was preparing to switch to using national currencies with its trading partners, such as China, Russia, Iran and Ukraine.

The currency drop is particularly painful for Turkey because it has accumulated a high debt in foreign currencies.

The Turkish lira has dropped to record lows in recent weeks, having fallen some 42% so far this year.

On Wednesday, the lira traded at 6.4125 to the U.S. dollar, weakening from a close of 6.3577 a day earlier.

Qatar's royal court released a statement saying Al-Thani "issued directives that will see the State of Qatar to provide a host of economic projects, investments, and deposits" worth $15 billion to support the Turkish economy.

Turkish President Tayyip Erdogan meets with Emir of Qatar Sheikh Tamim bin Hamad al-Thani in Ankara, Turkey August 15, 2018. The officials from Erdogan's office provided the information on condition of anonymity in line with regulations.

"Turkish-Qatari relations are based on solid foundations of true friendship and solidarity", he said. Ankara was also ready for such a move in trade with the European Union, he added.

It chose to release two Greek soldiers from prison on Tuesday.

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Erdogan has accused the United States of stabbing Turkey in the back and on Tuesday called for a boycott of U.S. electronics products. Moscow recently declared Moscow will decrease its holdings of USA assets in retaliation against increasing tariffs imposed by Trump on Russian Federation and Turkey.

"This is just a symbolic gesture", said Ozgur Unluhisarcikli, director of the German Marshall Fund's Ankara office.

The amount of products affected by the tariffs the two countries have imposed on one another are a relatively small part of the $19 billion of goods they traded a year ago, according to United States data.

Attention will turn to an address on Thursday by the finance minister to foreign investors for clues on any change in economic policy.

Turkey and Qatar have traditionally maintained good ties and Ankara stood by Doha after Saudi Arabia and other Arab states severed diplomatic, trade and travel ties with Qatar a year ago, accusing it of financing terrorism, a charge Doha denies.

Last Friday, US President Donald Trump said he had authorized higher tariffs on aluminum and steel imports from Turkey. A higher court is scheduled to review the appeal.

Although he was released to home detention, Brunson faces a prison sentence of up to 35 years if he is convicted on both counts at the end of his ongoing trial.

North Atlantic Treaty Organisation allies United States and Turkey have been at loggerheads over a wide range of topics including diverging interests in Syria, Ankara's ambition to buy Russian defense systems and Andrew Brunson, a pastor on trial in Turkey for terrorism charges.

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