Energy Officials: Trump's Turkey Tariffs Will Push Pipeline Costs Higher

Marcus Newton
August 14, 2018

President Tayyip Erdogan told Turks on Friday to sell their gold and U.S. dollars to support the country's currency which plunged after U.S. President Donald Trump escalated a feud with North Atlantic Treaty Organisation ally Turkey by doubling tariffs on metals imports.

Turkey and the United States are now experiencing rocky relations after the USA imposed sanctions last Wednesday on two Turkish ministers over the continued detention of U.S. pastor Andrew Brunson, who faces terrorism charges and up to 35 years in prison if found guilty.

Trump made his unexpected announcement on Twitter from his golf club in Bedminster, New Jersey, as the Turkish currency, the lira, fell to all-time lows against the US dollar.

President Donald Trump says he's just authorized the doubling of steel and aluminum tariffs "with respect to Turkey". "Our relations with Turkey are not good at this time!" the President tweeted on Friday.

"Section 232 tariffs are imposed on imports from particular countries whose exports threaten to impair national security as defined in Section 232, independent of negotiations on trade or any other matter", White House deputy press secretary Lindsay Walters said in a statement.

Criticizing what he called the "interest lobbies", he reiterated that they can not defeat Turkey. That could invite further legal challenges from other countries, who have already filed complaints about the steel and aluminum tariffs with the World Trade Organization.

Meanwhile, concerns of the US-Turkey spat went beyond Turkey's borders as Financial Times reported that the European Central Bank (ECB) has become concerned about the exposure of some of the currency area's biggest lenders to Turkey in light of Turkish lira's dramatic fall. "Relations with countries who behave like this have reached a point beyond salvaging", said Erdogan, who warned of "economic war".

"The real losers of decisions taken by the U.S. administration are producers, private sector, and exporters of both countries", the statement concluded. U.S. President Donald Trump introduced a round of sanctions on August 1, preventing the Turkish justice an interior ministries from doing business with U.S. businesses.

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Countries like Turkey that are experiencing economic turmoil usually get sympathy from the rest of the world, said Torsten Sløk, chief global economist for Deutsche Bank. "This is a domestic and national struggle".

"Nevertheless, we implore President Trump to return to the negotiating table - this can and should be resolved through dialogue and cooperation".

Turkish President Recep Tayyip Erdogan says his country will continue to grow despite what he described as an "attack" on the Turkish lira.

Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fueling economic growth. This will be my people's response to those who have waged an economic war against us'.

Berat Albayrak, Turkey's treasury and finance minister, sought at a news conference Friday in Istanbul to ease investor concerns about Turkey's econom.

The euro sagged to a 13-month low against the dollar amid worries about the impact of financial market turmoil in Turkey.

"We are moving forward with the project, but believe that imposing a tax on pre-existing orders is unjust, especially considering the specific materials we purchased overseas were not readily available in the U.S.", Willie Chiang, Plains' chief operating officer, said on Tuesday. As the currency drops, Turkish companies and households with debt in foreign currencies see the cost of repaying those loans expand. It said the United States remained an important trade partner.

Other reports by MaliBehiribAe

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