Turkey doubles tariffs on Imports. Turkish President Recep Tayyip Erdogan on Wednesday imposes double tariffs on U.S imports. Recently, U.S president Donald Trump imposed higher tariffs on aluminium and steel imports from Turkey. In retaliation to this, Turkey imposes double tariffs on some U.S imports such as alcohol, cars, and tobacco. According to the decree signed by Mr Erdogan, now tariffs on passenger cars is 120%, on alcoholic drinks is 140% and on leaf tobacco is 60%. Goods such as cosmetics, rice, and coal will also come in double tariffs category.

Turkish Lira is also stabilizing its value to the U.S dollar after central bank squeezed lira liquidity in the market. According to IMF statistics, last year the U.S was the fourth-largest source of imports to Turkey, accounting $12 billion of imports. In response, U.S was Turkey’s fifth-largest export market, amounting to $8.7 billion last year. Turkish Turkey’s Vice-President Fuat Oktay in his twitter told about the U.S intention to deliberate attacks on the economy. This is the result of increasing tension regarding Andrew Brunson, a pastor on trial for terrorism charges. Trump asked for his release but Ankara refused and told that decision was up to the court. Also, due to the ambition of Turkey to buy Russian defence systems.

Qatar Involvement in Trade War

Recently, Saudi Arabia and other Arab states boycotted the trade, diplomatic, and tourism ties with Qatar. As they accused Qatar of financing terrorism but Qatar denied it. So, Qatar supported Turkey to recover the economy due to sanctions. Meanwhile, Qatar announced the investment of $ 15 billion in Turkey to channel its banks and financial markets. Both Turkey and Qatar have traditionally good relations in almost every field. Also, the Turkish court decided to release Taner Kilic, a researcher from Amnesty International, from the jail. So, Turkey doubles tariffs on Imports will impact hugely on its foreign policy.