Turkey Hits Back At US With Tariff Hikes On Alcohol, Cars

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Speaking at a Symposium in Ankara, Erdogan said Turkish businesses must continue to produce and export the country's own goods.

Turkey's President Recep Tayyip Erdogan announced that the country of 81 million people will boycott American consumer electronics, including Apple's iPhone.

Turkish presidential spokesman Ibrahim Kalin referred to the conflict with the USA in stark terms saying, "Turkey does not favor an economic war, but it can not remain unresponsive when it is attacked".

President Recep Tayyip Erdogan has repeatedly described the crisis as an "economic war".

The United States imposed sanctions on two Turkish government ministers over the trial on terrorism charges of U.S. evangelical pastor Andrew Brunson in Turkey, and last week Washington raised tariffs on Turkish metal exports.

The lira jumped 5.9 per cent to 6.5028 per dollar by 6:03 p.m.in Istanbul.

The lira continued its recovery against the dollar on Wednesday as Turkey increased tariffs on USA goods and introduced measures to restrict bets against the embattled currency.

On Friday, US President Donald Trump doubled tariffs on aluminum and steel from Turkey in response to the detention of a US citizen.

Last month, a Turkish court ordered Brunson's release from prison but placed him under house arrest, prompting a furious reaction from the Trump administration, which had demanded that he be allowed to return to the United States.

The promise of an investment package comes after Qatar's Emir Tamim bin Hamad Al-Thani met with President Tayyip Erdogan in Ankara and as Turkey comes to terms with a collapse in the lira amid rising tensions with North Atlantic Treaty Organisation ally the US.

Qatar's royal court released a statement saying Al-Thani "issued directives that will see the State of Qatar to provide a host of economic projects, investments, and deposits" worth $15 billion to support the Turkish economy.

Erdogan also has called on people to exchange their US dollars for Turkish lira to help strengthen the exchange value of the country's currency.

An employee at an upscale clothing store who declined to give his name said the amount of shoppers was unusual even in high season, attributing it to the lira's fall.

State Department spokeswoman Heather Nauert said Turkey's economic woes were not started by USA sanctions.

The US also blocked its sale of F-35 fighter jets to Turkey as the country's foreign minister Mevlut Cavusoglu met his Russian counterpart Sergei Lavrov on Monday, vowing stronger cooperation - hinting at a possible change in the status quo on the region's security.

Experts say any impact of the anticipated call with the finance minister is temporary, and markets need more than technical remedies like the central bank's promise to provide emergency liquidity to banks, or the government's promise not to seize dollar-denominated bank deposits.

Amid calls to "burn" the dollars, the group headed to a bank branch where they converted the money, it said.

In this July 25, 2018 photo, evangelical pastor Andrew Craig Brunson, center, arrives at his house in Izmir, Turkey.