Turkey issues a chilling warning to double imported tariffs on certain US goods

Turkey seems not to spare the Trump administration by any means for imposing higher tariffs on its aluminium and steel exports and declaring unfair sanctions against Ankara. On Wednesday, August 14, the country thus, reportedly issued a chilling warning to levy higher tariffs on certain American goods as a tit-for-tat action.

As soon as the United States had sanctioned Ankara early this month, Turkish Foreign Minister Mevut Cavusoglu came up with his response saying that the country would not be left without retaliation as it constitutes a hostile stance.

On August 14, Turkish Vice President Fuat Oktay said that the rises were ordered "within the framework of reciprocity in retaliation for the conscious attacks on our economy by the US administration."

This retaliatory act is because of the harm caused to the value of the Turkish currency lira, fanning fears that the country is on the verge of an economic crisis that could spillover into Europe. 

However, the Turkish President Recep Tayyip Erdoğan repeatedly claims that this crisis is nothing but an economic war that Turkey will win.

The tariff increases amount to a doubling of the existing rate, such as 50 per cent on imports of US rice, 140 per cent on hard alcoholic drinks like spirits, 60% in leaf tobacco, and 60% on cosmetics, reported the state-run Anadolu news agency.

The tariffs on auto imports are now up to 120% depending on the type of vehicle. 

Following this latest outburst, the Turkish currency lira has not seen a major plunge yet, which on Tuesday clawed back some ground after losing just under a quarter of its value in trade on Friday and Monday.