Published: Fri, August 17, 2018
Money | By Bruce West

Turkey will respond if US imposes more sanctions - trade minister

Turkey will respond if US imposes more sanctions - trade minister

Treasury Secretary Steve Mnuchin said during a cabinet meeting Thursday that the U.S.is prepared to levy more economic sanctions against Turkey if Brunson is not released.

"We have more that we're planning to do if they don't release him quickly", Mnuchin told a cabinet meeting, without elaborating on what would be involved.

Washington warned more economic pressures may be in store for Turkey if it refuses to release Brunson, a White House official said on August 15.

"They want to hold our wonderful pastor", Trump added.

A Turkish court has rejected an appeal to release Andrew Brunson, a USA pastor at the centre of a dispute between Ankara and Washington.

Last week the United States doubled tariffs on aluminium and steel imports from Turkey, during a dispute over Turkey's detention of an American pastor on security charges that the U.S. views as baseless.

"Certainly it has been a very dramatic war of words between Ankara and Washington and Trump has made no bones about the financial repercussions that the USA is willing to undertake". "He's an innocent man". On Monday the lira hit a record low of 7.2, dragging down other emerging markets currencies.

The U.S. economy is 25 times larger than Turkey's, based on nominal GDP. The lira's sharp decline has sparked fears in the global community of a Turkish economic crisis.

Turkish President Tayyip Erdogan announced yesterday that the country would boycott all electronics from the United States amid tension and rising conflict between the two countries and its leaders.

He says the US will pay nothing for his return, because he is innocent and indicated the pressure on Turkey will continue.

The currency strengthened some 2 percent against the dollar, trading at around 5.85 per dollar, hours before Treasury and Finance Minister Berat Albayrak was scheduled to update worldwide investors about the economy.

The lira rebounded some 8 per cent on Tuesday, helped by news of a planned conference call on Thursday in which the finance minister will seek to reassure worldwide investors.

Although Qatar has now pledged $15 billion it has not actually paid anything, and it may not be enough to solve Turkey's economic problems. Investors also fret over Erdogan's influence over monetary policy.

A Chinese delegation led by Vice Minister of Commerce Wang Shouwen will meet US representatives, China's Ministry of Commerce said in a statement.

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