Turkey's Erdogan vows U.S. boycott, but diplomats resume talks

The Borsa Istanbul stock exchange

Image The Borsa Istanbul stock exchange- markets in Turkey have been under pressure since the collapse of the lira

Tariffs on cosmetics, rice and coal were also increased.

Turkey's Vice President Fuat Oktay said on Twitter that the tariffs were increased "within the framework of the principle of reciprocity in retaliation for the conscious economic attacks by the United States".

The row with Washington has helped drive the lira to record lows, with the currency losing more than 40 per cent of its value against the dollar this year, prompting central bank liquidity moves to support it.

Earlier in the day, Recep Tayyip Erdogan said Turkey would boycott electronic goods from the United States - suggesting people can use Samsung or Turkish Vestel devices instead of iPhones.

Citing Wednesday's tariff hikes on imports of American goods, the spokesman said, "Turkey does not intend to engage in a trade war, but when it is under an economic siege, the country will take all necessary steps to repel those attacks in coordination with all relevant institutions, state bodies and business associations".

Turkey on Wednesday raised tariffs on a number products imported from the United States, including passenger cars, tobacco and spirits, retaliating for President Trump's decision last week to double tariffs on Turkish metals.

The tariffs come a day after President Recep Tayyip Erdogan said Turkey would boycott US electronic goods, singling out iPhones.

It is not clear if this will be an official government boycott or just a call to the Turkish public to stop buying American electronics.

The newspaper also quoted a government undersecretary as saying that Turkey's Financial Crime Investigation Board "started an investigation into people and institutions that spread fake news" meant to undermine the lira-dollar exchange rate.

It recovered a bit, by four per cent to around 6.12 lira per US dollar Wednesday, after the government took steps to shore up the currency by reducing the daily limit in bank foreign currency swap transactions.

President Recep Tayyip Erdogan suggested that Turkey will stick to Samsung and Vestel if USA products are banned.

On Friday, Turkey's Foreign Ministry (MFA) said Turkey would retaliate against the raising of steel and aluminium tariffs by the U.S. administration. Turkey has held the evangelist since 2016 on charges that he was involved in a failed coup attempt that year. Appearing alongside him, Turkey's Foreign Minister Mevlut Cavusoglu said "the era of bullying must end".

Salim bin Mubarak Al Shafi, Qatar's ambassador to Turkey, said his country would continue to support Turkey, adding that the emir's visit demonstrated the "depth" of the two countries' relations. USA officials say National Security adviser John Bolton had met with the Turkish ambassador to Washington on Monday.

Relations between Washington and Ankara have rapidly soured in recent weeks over Turkey's detention of an American pastor. But neither side has backed down, with Erdogan invoking Turkey's past of supporting the U.S. in times of need, including America's war in Afghanistan.

Andrew Craig Brunson, an evangelical pastor from Black Mountain, N.C., arrives at his house in Izmir, Turkey, on July 25.

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