The Turkish lira added to its steep losses on Friday, hitting a record low after President Donald Trump announced he was doubling metals tariffs on Turkey.

The lira briefly fell 20 percent against the U.S. currency, reaching a record low, after Trump made the comment in a tweet. The currency last traded down 13.5 percent against the U.S. dollar.

The White House later said in a statement: "As he stated, the President has authorized the preparation of documents to raise tariffs on imports of steel and aluminum from Turkey. Section 232 tariffs are imposed on imports from particular countries whose exports threaten to impair national security as defined in Section 232, independent of negotiations on trade or any other matter."

So far there has been no confirmation to CNBC of the new tariff policy from the U.S. Department of Commerce.

Trump's tweet and the White House comment came after Turkish President Recep Tayyip Erdogan asked citizens to convert their dollars and other foreign currencies as well as gold holdings to lira.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks. This is a domestic and national struggle," Erdogan said, according to an Associated Press translation.

Erdogan said Turkey was facing an "economic war" and noted the country would respond to those countries who had started it.

"We are facing economic attacks today, and we need to defend our country," Erdogan said, according to a separate translation. "The economic attack against us now is the same as the coup attempt against us. I'm urging our country to increase outputs, to increase exports."

Turkish stocks also fell Friday as the iShares MSCI Turkey ETF dropped 13.3 percent. The ETF was already down 42.3 percent this year before Friday's losses.

The sharp drop in Turkish assets came after a delegation returned from Washington with no apparent progress on the detention of U.S. pastor Andrew Brunson, who is charged with supporting a group blamed for an attempted coup in 2016.

Last month, Trump threatened to slap "large sanctions" on the country if it refuses to free Brunson. The U.S. then announced on Aug. 1 sanctions on Turkey's Justice and Interior ministers, prohibiting U.S. citizens from doing business with them.

The currency pared losses slightly on a report that Jay Sekulow, one of Trump's attorneys, said the parties involved were close to reaching a resolution on the matter.

— CNBC's David Reid, Gina Francolla and Reuters contributed to this report.</s>President Donald Trump announced plans Friday to double tariffs on steel and aluminum in Turkey amidst a fight to get an American pastor released.

“Our relations with Turkey are not good at this time!” Trump wrote on Twitter.

Trump commented on the issue as the Turkish lira has fallen 36 percent in 2018, and the country faces increasing debt without foreign investment.

“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 Dollar!” Trump wrote. “Aluminum will now be 20% and Steel 50%.”

Trump has tried to force Turkey to free American pastor Andrew Brunson, who was detained by authorities in the country as part of a crackdown in 2016:</s>US President Donald Trump said today he had doubled steel and aluminum tariffs on Turkey, adding to pressure on that nation's troubled economy amid a diplomatic row with Washington.

"I have just authorised 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 Dollar!" Trump said on Twitter.

"Our relations with Turkey are not good at this time!" Trump's announcement came as Turkey's embattled lira hit new record lows against the US dollar and euro, losing nearly nine percent in value as strains with the United States showed no sign of abating and fears grew over the exposure of European banks.

Turkey remains at loggerheads with the United States in one of the worst spats between the two NATO allies in years over the detention for the last two years of American pastor Andrew Brunson and a host of other issues.

Washington this month imposed sanctions on senior Turkish officials, angering President Recep Tayyip Erdogan and prompting retaliatory measures by Ankara.

Meanwhile, markets are deeply concerned over the direction of economic policy under Erdogan with inflation at nearly 16 percent but the central bank reluctant to raise rates in response.

Erdogan today called on Turks to support their struggling currency. "We will not lose the economic war," state run TRT Haber television quoted Erdogan as saying.

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira. It is a national fight." Harsher US tariffs were likely to punish Turkey's already faltering steel exports to the United States.

In the first three months of 2018, Turkish steel exports to the United States fell nearly 50 percent over the same period in 2017, making it the only top 10 source of US steel imports to see a decrease, according to the US Commerce Department.</s>Washington, Aug 11 (IANS) US President Donald Trump on Friday said he has authorized to double the tariffs on steel and aluminum products from Turkey to 50 per cent and 20 per cent, respectively.

Tensions ramped up between the two countries over the detention of an American pastor by Turkey. Trump tweeted on Friday that the US-Turkey ties “are not good at this time!”

Trump added that the Turkish currency Lira “slides rapidly downward against our very strong Dollar!”

The Turkish lira has fallen more than 10 per cent since last week when the US slapped sanctions on two Turkish ministers. Early on Friday, the currency hit an all-time low of 6.30 against the US dollar, Xinhua reported.

Turkey and the US are currently experiencing rocky relations after the US imposed sanctions last Wednesday on two Turkish ministers over the continued detention of US pastor Andrew Brunson, who faces terrorism charges and up to 35 years in prison if found guilty.

Brunson was indicted for allegedly having links with the outlawed Kurdistan Workers’ Party and Fethullah Gulen, an exiled Turkish preacher who has allegedly masterminded the failed coup attempt in 2016 to topple Erdogan.

A Turkish court has agreed to move Brunson from prison to house arrest over health concerns, but it still does not allow him to return to the US.

As a result of the US sanctions, any property or interest in property of both Turkish ministers within US jurisdiction is blocked, and US persons are generally prohibited from engaging in transactions with them.

In response, the Turkish Foreign Ministry vowed to “retaliate” against US “aggression” over the case of Brunson “without any delay,” and called on Washington to reverse its decision.

Last Friday, Turkish Foreign Minister Mevlut Cavusoglu and his US counterpart Mike Pompeo met in Singapore on the sidelines of the Association of Southeast Asian Nations foreign ministers’ meeting. Ankara and Washington agreed to work together to resolve problems between them, Cavusoglu said after the meeting.

The two sides seemed to have failed to resolve the deadlock though bilateral talks in Washington earlier this week during the visit of a Turkish delegation headed by Deputy Foreign Minister Sedat Onal and made up of officials from Turkey’s justice, finance and foreign ministries.

US State Department spokesperson Heather Nauert said on Thursday that although the two sides “had wide-ranging meetings at the State Department and with other departments here in Washington,” the US side “would define progress as Pastor Brunson being brought home”.

“The progress that we want to be made is to have Pastor Brunson return home,” she added.

Turkish President Recep Tayyip Erdogan on Thursday also dismissed concerns over the tumbling lira and called on his nation to “have no worries”.

Turkish Treasury and Finance Ministry announced a “new economic model”, aiming to stabilize their economic growth.

In March, the US had imposed tariffs of 25 per cent on steel and 10 per cent on aluminum for imports from a variety of countries. Turkey was reportedly the sixth largest steel importer to the US.</s>U.S. President Donald Trump doubled steel and aluminum tariffs against Turkey to 20 and 50 per cent on Friday, deepening the rift between the two NATO allies, and sending the country's currency into a tailspin.

"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 Dollar!" Trump wrote in an early morning post on Twitter. "Aluminum will now be 20 per cent and Steel 50 per cent. Our relations with Turkey are not good at this time!"

The United States slapped sanctions on two Turkish officials earlier this month over a detained American pastor who is being tried on espionage and terror-related charges.

Turkey vowed retaliation "without delay" and warned the move would further harm relations between the two allies.

The Turkish lira has been in freefall of late, down 30 per cent so far in 2018, before sliding another 13 per cent on Friday after Trump's tweet. For most of last year, the Turkish lira hovered between 25 and 30 cents US. On Friday, it was changing hands at about 15 cents. A decade ago, the two were near par.

One of the country's biggest economic problems is that the inflation rate is sitting at 16 per cent — more than three times what the central bank is forecasting it would be, said Bipan Rai, a foreign exchange strategist with CIBC.

"The next move is very important to watch," Rai said. "The most market friendly move would be to raise interest rates by a significant amount to stem the pain on the currency and to deal with the inflation spike."

While the risk to Canada remains low, Rai says if the situation gets worse Turkey could cause pain for Europe's economy, because many European banks are heavily exposed to the country's debt.

The country is borrowing and spending far more than it saves and that's being financed by foreign borrowing.

"On its own, Turkey is a small economy but the risk comes from understanding which parties are lending to Turkish businesses and the government," Rai said.</s>Aug. 10 (UPI) -- The Turkish lira fell to its lowest point ever against the U.S. dollar on Friday as a diplomatic conflict between Turkey and the United States continued.

The lira dropped by over 11 percent in value in one day on Friday morning to nearly six lira per dollar. As recently as April the ratio was about four lira per dollar. The selloff came as a Turkish delegation returned from the United States, reporting no progress on negotiations involving a U.S. pastor imprisoned in Turkey.

Andrew Brunson has been in Turkish custody since 2016, when he was arrested on charges of terrorism and support of a group held responsible for an attempted coup of Turkish President Recep Tayyip Erdogan. U.S. President Donald Trump introduced a round of sanctions on Aug. 1 and threatened additional "large sanctions" against Turkey, a NATO ally, for Brunson's detention.

Erdogan has a speech scheduled on Friday, but on Thursday he said Turkey will withstand the economic pressure.

"There are various campaigns being carried out. Don't heed them. Don't forget, if they have their dollars, we have our people, our God," Erdogan said. "We are working hard. Look at what we were 16 years ago and look at us now," a reference to his terms as prime minister and president.

Turkey's economy is regarded as fragile because of its high debt, which the international Monetary Fund estimates is 50 percent of its gross domestic product. As the lira falls in value, the debt becomes harder to pay. Inflation increased 16 percent in July, and Erdogan has insisted that interest rates not increase. His comments suggest that the Turkish central bank does not act with full independence, CNBC reported on Friday.

"There is zero credibility in the Central Bank of Turkey and zero credibility in Turkish policy making. Whatever they do, the market doesn't believe them," British economist Timothy ash of BlueBay Asset Management told CNBC.</s>WASHINGTON (Reuters) - U.S. President Donald Trump said on Friday he had authorized higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminium and 50 percent one on steel, as tensions mount between the two NATO allies over Ankara’s detention of an evangelical pastor and other diplomatic issues.

“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 Dollar!” Trump said in an early morning post on Twitter.

“Aluminuim will now be 20 percent and Steel 50 percent. Our relations with Turkey are not good at this time!”

Trump’s announcement came less than an hour after Turkish President Tayyip Erdogan urged Turks to help defend the country against what he called economic war against the country. Erdogan appealed to a crowd in the city of Bayburt to exchange dollars and gold for Turkish lira to prop up the plunging currency.

The United States, the world’s biggest steel importer, imposed tariffs of 25 percent on steel and 10 percent on aluminium in March for imports from a variety of countries.

Since then, its relationship with Turkey, the sixth largest steel importer to the United States, has deteriorated, prompting Ankara to send a delegation this week to Washington to meet with both the State and Treasury Departments. But those talks on Thursday showed no signs of breakthrough.

Last week, the United States imposed sanctions on Turkey’s justice minister and interior minister for not releasing pastor Andrew Brunson.

Securing the release of Brunson, arrested in 2016, is a top priority for the United States, and it is also tussling with Turkey over the detention of three locally employed U.S. embassy staff, trade issues and differences over Syria.</s>WASHINGTON -- U.S. President Donald Trump says he has authorized the doubling of tariffs on steel and aluminum imports from Turkey as the diplomatic row over Ankara’s detention of a U.S. pastor intensified.

In a Twitter post on August 10, the U.S. president also referenced the Turkish lira's weakness against “our very strong dollar.”

"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 Dollar!" Trump wrote.

"Aluminum will now be 20 percent and Steel 50 percent. Our relations with Turkey are not good at this time!" he added.

In June, the United States imposed tariffs of 10 percent on aluminum imports and 25 percent on steel against many key global partners, complaining of unfair trade practices.

The new tariff threat targeting Ankara comes as bilateral tensions have risen over the detention and trial in Turkey of U.S. Pastor Andrew Brunson, 50.

The pastor has been held since 2016, charged with "committing crimes on behalf of terror groups without being a member," a reference to Kurdish separatists and a group that President Recep Tayyip Erdogan blames for a failed 2016 coup attempt against him.

Brunson, who faces up to 35 years in prison, was transferred to house arrest on July 25 as his trial continues.

Trump on July 26 threatened to impose "large sanctions" on Ankara if the government did not immediately let Brunson leave Turkey.

The sanction and tariff threats have led to a near-collapse of the Turkish lira -- which tumbled 19 percent on August 10 alone -- and forced Ankara into cost-cutting steps to stabilize the economy.

With reporting by Reuters and dpa</s>US President Donald Trump says he has authorised the doubling of steel and aluminium tariffs “with respect to Turkey”.

US President Donald Trump says he has authorised the doubling of steel and aluminium tariffs “with respect to Turkey”.

Trump turns heat up on Turkey as he authorises doubling of metals tariffs

Mr Trump said in a tweet that the tariff on aluminium imports will be increased to 20% and the tariff on steel imports will be raised to 50% as the Turkish lira “slides rapidly downward against our very strong Dollar!”.

Mr Trump is also declaring that “Our relations with Turkey are not good at this time!”.

The United States imposed sanctions on two Turkish officials earlier this month over a detained American pastor who is being tried on espionage and terror-related charges.

Turkey vowed retaliation “without delay” and warned the move would further harm relations between the two allies.

Mr Trump’s tweet caused a further drop in the Turkish currency, which is now down 13% on the day.

Turkish President Recep Tayyip Erdogan has appealed for calm as the currency plunges, urging people to change foreign money into local lira.

Mr Erdogan said during an address to supporters: “Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks. This is a domestic and national struggle.”

He appeared to blame foreigners for trying to hurt Turkey, saying: “This will be my people’s response against those waging an economic war against us.”

Mr Erdogan reportedly said his government “will not lose the economic war”.

Turkish newspaper Hurriyet and other media reports quote Mr Erdogan as making the comment to a group of worshippers following traditional Muslim Friday prayers during a visit to the northern city of Bayburt.</s>President Donald Trump announced Friday that he is doubling tariffs on steel and aluminum from Turkey amid heightened tensions between the two nations.Trump made his unexpected announcement on Twitter from his golf club in Bedminster, New Jersey, as the Turkish currency, the lira, fell to all-time lows against the U.S. dollar."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 Dollar! Aluminum will now be 20% and Steel 50%," Trump said in a tweet.Earlier this week U.S. and Turkish officials met in Washington to discuss issues that have pitted the two NATO allies against each other.Despite Trump's insistence, Turkey has not budged in freeing American pastor Andrew Brunson, who has been detained by Turkey for almost two years on charges that he was working with a terrorist organization and was a spy. The Treasury Department announced fresh sanctions on two Turkish government officials in response to Turkey's refusal to let Brunson go.The president is "not happy with Turkey's decision not to release Pastor [Brunson]," White House press secretary Sarah Sanders said.In a statement, the White House said the president had authorized the preparation of documents to raise tariffs, citing national security concerns."Section 232 tariffs are imposed on imports from particular countries whose exports threaten to impair national security as defined in Section 232, independent of negotiations on trade or any other matter," White House deputy press secretary Lindsay Walters said in a statement.But it's unclear exactly how Turkey is threatening national security. A Republican ally of the president, Sen. Lindsay Graham of South Carolina, said Trump's decision was retaliation against Turkey for not releasing Brunson. Graham called Turkey's case against Brunson a "sham.""It's very unfortunate that the Trump administration had to retaliate against Turkey for their continued refusal to release Pastor Brunson and other Americans being held in Turkish custody," Graham said.In what appeared to be a diplomatic slight, Turkey announced soon after Trump's tweet that Erdogan had held a phone call with Russian President Vladimir Putin about "strengthening economic and trade ties."
U.S. President Donald Trump authorizes the doubling of Section 232 tariffs on imports of aluminium and steel from Turkey, to 20% and 50% respectively. The Turkish lira further falls to a new record low against the U.S. dollar and Turkish stocks tumble.