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Trump vows to double steel and aluminum tariffs on Turkey

Trump vows to double steel and aluminum tariffs on Turkey

We look the issue straining relations between the USA and Turkey.

Regional stocks also looked likely to suffer as Turkey's troubles tainted emerging markets in general, while boosting highly rated sovereign bonds.

A slew of unnerving headlines this week from the United Kingdom, Russia, and Turkey has culminated in a wild Friday for global markets.

Earlier, it had crashed some 12 percent through the 6.00 level for the first time in history, trading at one point at more than 6.20 lira per dollar.

Turkey's currency slumped to a new record low as Donald Trump compounded the country's economic crisis by doubling steel and aluminium tariffs.

These fears spilled over into USA markets, with investors shifting their focus away from strong corporate earnings to what was happening across the Atlantic.

Japan's Nikkei lost 0.95 percent and MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3 percent as bourses across the region turned red.

Relations between the two nations are in turmoil, over issues ranging from differing policies on Syria to U.S. evangelical pastor Andrew Brunson, who is now being held in Turkey on terrorism charges.

Turkey said it would respond to the new USA tariff action "without delay" and warned the move would further harm relations between the two countries.

Turkey was hit by a financial shock wave last week as its currency nosedived over concerns about the government's economic policies and a trade dispute with the United States.

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Erdogan has further attempted to bolster the nation against this "economic war", calling for citizens to exchange foreign currency and gold for lira as part of the "domestic and national struggle".

"We will say bye bye to those, who sacrifice their strategic partnership and alliance with a country of 81 million people on the altar of their relations with terror organizations", he said.

The tariff for steel imported from Turkey will now be 50 percent.

More evidence of how nervous investors are about Turkey's economy could be seen in the iShares MSCI Turkey exchange-traded fund, which plunged 18% and saw the most premarket trades ever, according to Bloomberg.

The pound also nosedived this week. The currency is down about 40 percent so far this year. In response, the currency renewed its sell-off.

"Before it is too late, Washington must give up the misguided notion that our relationship can be asymmetrical and come to terms with the fact that Turkey has alternatives", he said.

The Russian ruble this week plummeted to its lowest level against the dollar since 2016 as the USA said it was imposing more sanctions on Moscow over a chemical attack in the United Kingdom earlier this year.

The announcement intensified fears that U.S. sanctions on Russian Federation may not recede anytime soon.

The currency is down 40 percent just this year, shaking worldwide investors' confidence in the country.

In a televised speech on Friday, he referred to the diplomatic standoff as an economic war.