Turkey increases tariffs on some US goods, escalating feud

Although preference for Apple products is strong, their already high prices are curbing demand, Yavuz said adding that the boycott “is expected to reduce Apple’s performance in the country in the upcoming quarters.”

Posted: Aug 15, 2018 7:40 AM

ANKARA, Turkey (AP) — Turkey said Wednesday it is increasing tariffs on imports of certain U.S. products, including rice, cars, alcohol and coal — escalating a feud with the United States that has helped trigger a currency crisis .

The Turkish government said tariffs on American cars will be doubled to 120 percent while those on alcoholic drinks will be hiked by the same rate to 140 percent. Overall, the duties will amount to $533 million, a relatively small sum that is unlikely to hurt U.S. companies much and appears meant instead to make a political point.

Vice President Fuat Oktay said on Twitter that the tariffs on certain products were increased “within the framework of the principle of reciprocity in retaliation for the deliberate economic attacks by the United States.”

The tariffs come a day after President Recep Tayyip Erdogan said Turkey would boycott U.S. electronic goods, singling out iPhones. He suggested Turks would buy local or Korean phones instead, though it was unclear how the boycott would be enforced or encouraged.

Apple has 22 percent of the smartphone market in Turkey, where 11.4 million units were sold last year, according to Ramazan Yavuz, research manager at IDC consultancy company.

Although preference for Apple products is strong, their already high prices are curbing demand, Yavuz said adding that the boycott “is expected to reduce Apple’s performance in the country in the upcoming quarters.”

The Turkish lira has dropped to record lows in recent weeks, having fallen some 42 percent so far this year. It recovered a bit, by 4 percent to around 6.12 lira per dollar Wednesday, after the government took steps to shore up the currency by reducing the daily limit in bank foreign currency swap transactions.

Also helping was Turkey’s decision to release two Greek soldiers from prison on Tuesday, increasing prospects for improved relations with the European Union.

Presidential spokesman Ibrahim Kalin claimed Wednesday that a series of measures aimed at shoring up the Turkish currency were taking effect and that he expected the lira to strengthen further.

“We predict that measures that our institutions will continue to take will result in an even stronger normalization of the Turkish economy,” Kalin said.

But fundamental concerns about the economy persist, experts say.

Investors are worried that about Erdogan’s control over the central bank and his pressure to keep it from raising interest rates. Higher rates would slow economic growth, which he wants to egg on, but are urgently needed to support the currency and tame inflation, experts say.

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

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

Erdogan has reacted to the financial instability by blaming foreign powers, in particularly the United States, a longtime NATO ally, which he says is waging an “economic war” as part of a plot to harm Turkey.

Washington has imposed financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey, as U.S. President Donald Trump tries to secure the release of Andrew Brunson, a 50-year-old American pastor being tried in Turkey on espionage and terrorism-related charges.

On Wednesday, a court rejected an appeal for Brunson’s release from detention and for a travel ban against him to be lifted, the state-run Anadolu Agency reported. A higher court was however, was scheduled to review the appeal, the agency said.

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.

The evangelical pastor, who is originally from Black Mountain, North Carolina, has lived in Turkey for 23 years and led the Izmir Resurrection Church.

Huntsville
Clear
56° wxIcon
Hi: 77° Lo: 52°
Feels Like: 56°
Florence
Clear
57° wxIcon
Hi: 78° Lo: 55°
Feels Like: 57°
Fayetteville
Clear
53° wxIcon
Hi: 77° Lo: 50°
Feels Like: 53°
Decatur
Clear
54° wxIcon
Hi: 78° Lo: 53°
Feels Like: 54°
Scottsboro
Overcast
54° wxIcon
Hi: 75° Lo: 53°
Feels Like: 54°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 137564

Reported Deaths: 2399
CountyConfirmedDeaths
Jefferson19938351
Mobile13507293
Montgomery8866185
Tuscaloosa8837118
Madison798179
Shelby607449
Lee597161
Baldwin560650
Marshall397543
Calhoun355644
Etowah354845
Morgan333428
Houston293921
Elmore271948
DeKalb244321
St. Clair235936
Walker235485
Talladega217830
Limestone214420
Cullman191920
Dallas179826
Franklin179130
Autauga178727
Russell17683
Lauderdale175133
Colbert167726
Blount162115
Escambia161624
Jackson159712
Chilton159530
Covington140727
Dale140344
Coffee13716
Pike121611
Chambers117542
Tallapoosa117185
Clarke110316
Marion97529
Butler91740
Barbour8867
Winston75013
Marengo72620
Pickens67014
Randolph66613
Lowndes65927
Bibb65810
Hale64928
Geneva6444
Lawrence63425
Cherokee61713
Bullock60714
Clay5918
Monroe5908
Washington56012
Crenshaw54332
Perry5426
Conecuh53911
Wilcox53211
Henry5105
Macon48318
Fayette4689
Sumter43719
Cleburne3945
Lamar3822
Choctaw35112
Greene30515
Coosa1743
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 194611

Reported Deaths: 2420
CountyConfirmedDeaths
Shelby31097466
Davidson26797311
Hamilton963495
Knox960579
Rutherford945290
Williamson536636
Sumner489598
Wilson356247
Putnam336541
Montgomery313344
Unassigned30444
Madison299265
Out of TN297727
Bradley297217
Sevier266415
Blount256324
Maury242725
Washington235538
Robertson223939
Sullivan223133
Hamblen194828
Tipton184519
Gibson172624
Trousdale16697
Hardeman158426
Wayne15015
Dyer142017
Bedford137317
Dickson128015
Coffee127713
Fayette122719
Cumberland121919
Weakley121620
Anderson121013
Obion120211
Loudon11996
Henderson119125
Carter118028
Greene116946
McMinn116325
Jefferson114414
Lawrence108913
Warren10777
Macon106721
Monroe106618
Hardin105516
Lauderdale100316
Haywood99821
Franklin99410
Lake9252
McNairy92518
Carroll91320
Roane9126
Bledsoe8624
White85510
Rhea85413
Hawkins82720
Cheatham8199
Marshall7815
Overton7706
Cocke75310
Smith74011
Johnson7323
Chester65011
Giles64417
Lincoln6331
Henry6309
Hickman6008
DeKalb57414
Marion5518
Fentress5463
Crockett54419
Decatur5347
Campbell4614
Claiborne4455
Polk40710
Grainger3943
Union3762
Benton3418
Jackson3325
Morgan3213
Grundy3176
Cannon2950
Unicoi2911
Humphreys2673
Sequatchie2441
Clay2355
Houston2343
Meigs2323
Stewart2212
Scott2192
Lewis2081
Moore1831
Van Buren1660
Perry1530
Pickett1262
Hancock1073

Community Events