More US sanctions for Turkey if they don't obey

Fredrick Soto
August 17, 2018

Turkey's biggest mobile phone importing companies have cancelled their iPhone orders as Turkish citizens join a move to boycott USA products.

Andrew Brunson has been held in Turkey for almost two years over alleged links to outlawed political groups.

Brunson is now on trial and held on house arrest, with few indications that Turkish officials intend to comply with the demands - despite USA sanctions that were leveled against them two weeks ago.

A US dollar banknote is seen on top of 50 and 100 Turkish lira banknotes in this picture illustration in Istanbul, Turkey August 14, 2018. A popular benchmark of emerging market stocks is near bear-market territory while India's rupee is around record lows.

U.S. Treasury yields rose on the news of U.S.

The lira has staged a small recovery but that is threatened by a fresh tweet from US President Donald Trump.

"We put sanctions on several of the Cabinet members", Mnuchin said.

The White House said on Wednesday that it would not remove steel tariffs on Turkey, appearing to give Ankara little incentive to work for the release of Andrew Brunson, a pastor on trial in Turkey on terrorism charges.

In return, President Recep Tayyip Erdogan signed a decree to raise tariffs on American imports including cars, alcohol and tobacco.

Why this tension between North Atlantic Treaty Organisation allies? On Aug. 14, he said Turkey would boycott US electronic products.

The threat of sanctions comes amid Trump's concerns over Brunson, who is accused of being involved with an attempted coup that led to tens of thousands of people being arrested in 2016.

The US insists the pastor, a long-time Turkish resident, is "a victim of unfair and unjust detention".

In a tweet on Thursday, Trump urged Brunson to serve as a "great patriot hostage" while he is jailed and criticized Turkey for "holding our wonderful Christian Pastor".

Many analysts along Wall Street, though, say they don't expect another Asian financial crisis.

Erdogan wants Washington to extradite Turkish cleric and scholar Fethullah Gulen, whom the Turkish president views as a longtime antagonist and mastermind of the plot to oust him.

China has spoken out in support of Turkey following the threat of additional U.S. sanctions.

Maybe we can enjoy that feeling now, as worries seem to have eased over Turkey and its faltering currency, which as of Monday had marked a 30-per-cent-plus weekly plummet against the USA dollar.

It's an awkward triangle, given that Turkey is a Nato member, Russian Federation is Nato's number one threat and the organisation is obliged to defend any member that is attacked.

The president has remained defiant, calling on Turks to sell their gold and dollars for lira, describing the crisis as an "economic war". The Turkish central bank tightened some rules around currency exchange.

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