Trump authorizes doubling of tariffs on Turkey's steel, aluminum

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The lira's value fell about 13 percent against the dollar on Friday.

The currency has fallen 66 per cent since the start of the year, pushing up the cost of goods for Turkish people and shaking global investors' confidence in the country.

Elsewhere, the New Zealand dollar remained on the back foot, stretching its overnight slide to $0.6598, its lowest since March 2016.

Erdogan said buying the lira was a patriotic duty for Turks, in what has become an "economic war" against foreign powers, most likely referring to the US.

President Tayyip Erdogan told Turks on Friday to exchange gold and dollars into lira, with the country's currency in free fall after President Donald Trump turned the screws on Ankara by doubling tariffs on metals imports.

"Aluminum will now be 20% and Steel 50%", President Trump wrote.

President Tayyip Erdogan denied on Saturday that Turkey is in a currency crisis, dismissing a plunge in the lira as "fluctuations" which have nothing to do with economic fundamentals. "He has done nothing wrong, and his family needs him!"

The Turkish lira dropped dramatically against the dollar Friday, losing more than 18 percent of its value in one day - worsening an already months-long decline for Turkey's currency.

"If they have the dollar, we have Allah", he said.

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People change money at a currency exchange office in Istanbul, Turkey, Aug. 10, 2018.

"It is wrong to dare bring Turkey to its knees through threats over a pastor", Erdogan said in the Black Sea town of Unye.

He declared: "Our relations with Turkey are not good at this time!"

President Donald Trump said on Friday he had authorized higher tariffs on imports from Turkey, imposing a 20 percent duty on aluminum and 50 percent one on steel, as tensions mount between the two North Atlantic Treaty Organisation allies over Ankara's detention of an evangelical pastor and other diplomatic issues.

"Shame on you, shame on you", he said in remarks directly addressed to Washington. Henri Barkey, a professor of International Relations at Lehigh University, the tariffs "an unnecessary escalation" and advised direct talks between Mr Trump and Mr Erdogan. It now looks as if the Euro will continue to sell off, and short-term rallies will be selling opportunities unless we can recapture the 1.15 level above, something that looks a bit suspicious at this point considering how rough Friday was.

He railed against "those waging economic war" against Turkey.

Turkey, home to the Incirlik air base that is used by USA forces in the Middle East, has been a North Atlantic Treaty Organisation member since the 1950s. It is host to an X-band radar, a critical part of the Western alliance's missile defence system again Iran. Trump tweeted out on Friday.

"The US has to rehabilitate its addiction to sanctions (and) bullying or the entire world will unite - beyond verbal condemnations - to force it to", he warned.

Although Erdogan struck a defiant tone, his foreign ministry called for diplomacy and dialogue to solve problems with Washington and Trade Minister Ruhsar Pekcan said "we implore President Trump to return to the negotiating table".