Turkish President Recep Tayyip Erdogan warned the US on Saturday that Turkey does not respond to threats, a day after President Donald Trump announced he would double the rate of tariffs on Turkish metals.
Erdogan said the two countries have been strategic partners and North Atlantic Treaty Organisation allies for six decades and reminded Washington that Turkey and the U.S. "stood shoulder to shoulder against common challenges during the Cold War and its aftermath".
In a tweet on Friday, Foreign Ministry Spokesman Hami Aksoy said President Donald Trump's decision, which also violates the rules of World Trade Organization, "cannot be associated with seriousness expected from a state". The first one was Erdogan gave a speech doubling down on his failed policies, saying once again all their problems were the result of an "economic war" being waged against Turkey.
Erdogan said during an address to supporters: "Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".
But Erdogan, who had remained unusually silent until now as the lira crisis mounted, urged Turks to take matters into their own hands.
Turkish President Recep Tayyip Erdogan won another term in office in June with expanded powers.
The lira has now lost over a third of its value against both the dollar and the euro this year, with the currency battered by both concerns over domestic economic policy and the political situation. While many of Turkey's challenges are specific to that country, there are certain characteristics - a heavy debt load following a prolonged, low United States interest-rate driven borrowing binge in dollars - broadly shared throughout emerging markets.
New Finance Minister Berat Albayrak - Erdogan's son-in-law - acknowledged that the central bank's independence was critical for the economy, promising stronger budget discipline and a priority on structural reforms. The entire Turkish public is against USA policies that disregard Turkey's legitimate security demands.More news: Diversity remains golf's biggest challenge, says PGA of America CEO
On Thursday, Erdogan said "If they have their dollar, we have the people, we have Allah".
Far worse than that, though, is this has also sent Turkey's currency on a downward spiral that threatens to destroy its entire economy.
Last week, the U.S.
The new duties on Turkey are double the level that Trump imposed in March on steel and aluminum imports from a range of countries.
Relations between the U.S. and Turkey have not been helped by Turkey jailing an American citizen for an alleged attempted coup in 2016. It came as a Turkish delegation returned from the United States, reporting no progress on negotiations involving a USA pastor imprisoned in Turkey.
But Carsten Hesse, analyst at Berenberg bank in London, says that an economic downturn in Turkey would have limited impact on Europe or other major economies.
Turkey's financial crisis and further USA pressure spurred more concern among investors as fears appeared to spread to American markets.
He also blamed those seeking higher interest rates to help cope with the lira's record losses as being behind the country's economic misfortunes.
Without naming any country, Erdogan said that those - who stand against Turkey for the sake of small calculations - would pay the price. Hard currency debt issued by Turkish banks suffered similar falls.