Turkey increases tariffs on US goods; investors concerned about President Recep Tayyip Erdogan's economic policies

Ankara: Turkey announced Wednesday it is increasing tariffs on imports of certain US products, escalating a feud with the United States that has helped trigger a currency crisis. In a decision announced in the Official Gazette, Ankara said it was imposing extra tariffs on imports of products including rice, vehicles, alcohol, coal and cosmetics. Turkey’s 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 conscious economic attacks by the United States.” [caption id=“attachment_4965961” align=“alignleft” width=“380”] File image of Turkey’s president Recep Tayyip Erdogan. AP[/caption] The Turkish lira has dropped to record lows in recent weeks, having fallen some 42 percent so far in 2017. The currency has now stabilized at around 6.50 lira against the dollar. Investors are worried not only about Turkey’s souring relations with the US, a longtime NATO ally, but also Turkish President Recep Tayyip Erdogan’s economic policies and the country’s high debt accumulated in foreign currencies. Turkey has accused the United States of waging an “economic war” as part of a plot to harm the country. Washington has imposed financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey, as Donald Trump tries to secure the release Andrew Brunson, an American pastor being tried in Turkey on espionage and terrorism-related charges. The decision to impose new tariffs came a day after Erdogan said Turkey would boycott US electronic goods, singling out iPhones. He suggested Turks would buy local or Korean phones instead, although it was unclear how he intended to enforce the boycott.