Lira rallies after Turkey raises tariffs on US imports
Turkey’s move to increase tariffs on US imports has helped boost 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 rose 3%, also helped by measures aimed at deterring foreign investors speculating on the lira.
Despite 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.
Explaining 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.
Turkish Trade Minister Ruhsar Pekcan told the state run Anadolu news agency that the doubling of tariffs on some imported US products would amount to $533m.
Source: BBC
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