Since then, its relationship with Turkey, the sixth largest steel importer to the United States, has deteriorated, prompting Ankara to send a delegation this week to Washington to meet with both the State and Treasury Departments.
"As we have seen during the Greek debt crisis, financial markets are sufficiently interwoven that concerns over debt serviceability in one region can spread quite quickly within European banks".
The currency is down 40 percent just this year, shaking global investors' confidence in the country.
US President Donald Trump says he's just authorised the doubling of steel and aluminium tariffs "with respect to Turkey".
President Trump seems to think that Turkey has been trying to take advantage of us by having an economic crisis that's sent their currency tumbling.so he's taken steps to make it tumble even more? This is just another threat that traders need to factor in, when you consider that the markets are already overwhelmed with prolonged tension around the global trade war narrative, and the unpredictable nature of the Trump Administration that has seen a threat of sanctions on Turkey, new sanctions imposed on Russian Federation and re-imposed sanctions on Iran in just over one week.
Putting a 50 percent tariff on a foreign country's steel exports isn't the most conventional way to secure an imprisoned American's relief.
In a statement, the White House said the president had authorized the preparation of documents to raise tariffs, citing national security concerns.
Turkey's trade ministry said the USA tariff moves were against World Trade Organization rules. The U.S. recently hit two high-ranking Turkish officials with sanctions after the Turkish government refused to release imprisoned Christian pastor Andrew Brunson. The U.S. has made a decision to sanction a North Atlantic Treaty Organisation ally - absolutely remarkable.
The Turkish financial crisis set off a wave of selling across emerging markets, reviving the spectre of contagion that has been the sector's Achilles heel for decades. On Thursday Ergodan said Turkey will withstand the economic pressure.
If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks. "Don't worry", Erdogan told a crowd in the northeastern city of Bayburt.
"Some countries have engaged in behavior that protects coup plotters and knows no laws or justice", he said.
He railed against "those waging economic war" against Turkey. "Don't heed them", Erdogan said (via CNBC). "Our relations with Turkey are not good at this time!". And under Turkey's new executive presidential system, Erdogan pretty much calls all the shots.
USA stocks fell Friday amid the geopolitical concerns that pushed the Turkish lira to the record low against the dollar.
The diplomatic dispute with the US was one of the triggers that turned market jitters into a full-blown route this week. A 20 percent fall in exports would only reduce GDP by 0.1 percentage point or less per year in the 19 countries that use the euro currency. "If they have their dollar, we have the people, we have Allah". "But if the United States can't handle relations with Turkey ... then a further deepening of relations with Moscow is an option". Gulen has denied the allegation.
Ties between the countries have been strained as Washington has urged Ankara to release Andrew Brunson, an American pastor being held under house arrest on terrorism charges.