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Turkish lira crisis: Turkey boosts tariffs on US imports

Turkish lira crisis: Turkey boosts tariffs on US imports
16.08.2018
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TURKEY’S reaction to boost tariffs on US imports has helped to increase its weakened currency.

A decree signed by President Recep Tayyip Erdogan raised the tariffs on cars to 120%, on alcoholic drinks to 140% and on leaf tobacco to 60%.

The lira increased 3%, also helped by measures aimed at deterring foreign investors speculating on the lira.

Although the rise, Turkey’s currency has lost almost a third of its value against the dollar since January, pushing up the price of everyday items and raising fears that its weakness could infect other emerging market currencies.

Comprehending the new tariffs, Turkish Vice-President Fuat Oktay said the rises were ordered “within the framework of reciprocity in retaliation for the conscious attacks on our economy by the US administration”.

Tariffs were also increased on cosmetics, rice and coal. Turkey had previously said it would boycott US electronic products.

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