Economy
August 19, 2018
CRU: U.S. Tariffs Will Drive Greater Turkish Steel Exports
Written by Tim Triplett
Editor’s note: The following was contributed by analysts at the CRU Group.
The Turkish-U.S. political relationship has soured sharply in the past week. U.S. President Donald Trump tweeted relations were “not so good” on Friday, Aug. 10, and doubled tariffs on U.S. imports of Turkish steel. Turkish President Erdogan responded with anger, suggesting the country will forge new alliances and impose tariffs of its own on Turkey’s imports of various good from the U.S. This escalation in tensions between the two countries has investors worried about Turkey’s economic outlook and many are retreating to safety. Following the tweet, the lira dropped to a low of 7.0 against the U.S. dollar before recovering to around 6.0 by Friday.
