Trump Turns Up Heat on Turkey as Lira Plunges

from The Wall Street Journal,

Erdogan warns that Turkey’s ‘partnership’ with the U.S. ‘could be in jeopardy’.

The Turkish lira fell sharply to its lowest level ever on worries about Ankara’s stability, sending tremors through Europe and emerging markets amid renewed jousting between the country’s leader and President Trump. The lira dropped as much as 17% against the dollar, extending a tumble that ranks as one of the steepest in world markets this year.

President Recep Tayyip Erdogan defended his unorthodox policies in two speeches Friday, vowing to prevail in what he called an “economic war.” Mr. Trump said he would double steel and aluminum tariffs on Turkey, a move that would prevent Turkish exports from becoming cheaper with the lira’s fall and exacerbating worries of a prolonged trade spat between the two NATO allies. The U.S. appeared likely to keep up pressure after calling for months for the release of a U.S. pastor detained in Turkey. “Our relations with Turkey are not good at this time!” Mr. Trump wrote on Twitter.

Mr. Erdogan said in an opinion piece for the New York Times, published online Friday, “Unless the United States starts respecting Turkey’s sovereignty and proves that it understands the dangers that our nation faces, our partnership could be in jeopardy.”

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