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US condemns Turkey's 'retaliatory' tariffs

August 15, 2018

Washington has said Turkey's tariffs on US products ranging from cars to tobacco was "a step in the wrong direction." Ankara's diplomatic and trade spat with Washington has contributed to a full-blown currency crisis.

https://p.dw.com/p/33BBf
Alcoholic beverages in a Turkish bar
Image: DW/J. Hahn

Turkey's new measures, which go into effect immediately, include raising the import tariff on US-made alcoholic beverages to 140 percent and increasing the duty on passenger cars imported from the US to 120 percent.

Plastics, coal and agricultural produce were also on the list that was published in an official gazette on Wednesday.

"As part of the principle of reciprocity, tax rates on some products have been raised against the US administration's deliberate attacks on our economy," Turkish Vice President Fuat Oktay said.

The higher duties came just one day after Turkish President Tayyip Erdogan called for a boycott of all US electronic goods, insisting Turks did not need them.

Risk of shortages in Turkey as Lira nosedives

No improvement in sight

Tensions between Turkey and the United States have grown because of the continued imprisonment of US pastor Andrew Brunson, who is being tried for espionage and on terrorism-related charges.

Erdogan has remained defiant in the face of the crisis, railing against "economic terrorists and bullies of the global system" while threatening to form new alliances with Russia and China.

The impasse between NATO allies Turkey and the United States had affected the lira, bonds and stock markets, with the Turkish national currency losing almost half of its value since the beginning of the year.

The lira recovered a bit on Tuesday after hitting record lows on the previous day, following pledges by the central bank to boost liquidity.

US condemns tariffs

Washington on Wednesday condemned Turkey's action, calling it "a step in the wrong direction."

"The tariffs that the United States placed on Turkey were out of national security interest. Theirs are out of retaliation," White House spokeswoman Sarah Huckabee Sanders told reporters.

Sanders said Brunson's release would not lead to an easing of the tariffs.

"The tariffs that are in place on steel will not be removed with the release of pastor Brunson," she said. "The tariffs are specific to national security."

"The sanctions, however, that have been placed on Turkey are specific to pastor Brunson and others that we feel are being held unfairly, and we would consider that at that point," Sanders added.

Earlier on Wednesday, a Turkish court rejected an appeal for the pastor to be released from house arrest and for his travel ban to be lifted.

ap, hg/sms (Reuters, AFP, dpa)