Erdogan says US set deadline for pastor's release

The Turkish government has promised to announce a “new economic model” today amid fears that the International Monetary Fund would have to be called

Trump vows to double steel and aluminum tariffs on Turkey

The Turkish lira sank to a fresh record low of 7.24 to the dollar in early Asia Pacific trade, as investor worries over the state of the economy and deteriorating ties with the United States continued to drag down the currency. It was trading at 7.09 against the USA dollar before recovering some of the losses.

"We will give our answer, by shifting to new markets, new partnerships and new alliances, to the one who waged an economic war against the entire world and also included our country", Erdogan said.

Photo American Christian pastor Andrew Brunson is on trial in Turkey on terrorism charges.

US President Donald Trump said Friday he had doubled steel and aluminium tariffs on Turkey, which pushed the Turkish lira to new historic lows against the dollar. "We are knowledgeable with justice and law", Erdogan said in his address in the Black Sea province of Ordu on Saturday. "Our relations with Turkey are not good at this time!" he added.

"We are never accepting this order which declared economic war to the entire world and which held countries to ransom through sanction threats", he added, referring to the USA administration.

"Some close the doors and some others open new ones", he added.

"You dare to sacrifice 81-million Turkey for a priest who is linked to terror groups?" Trump has described his detention as a "total disgrace" and urged Erdogan to free him immediately.

Last week, a Turkish delegation went to Washington and met American counterparts but there was no breakthrough. In return for Brunson's release, for example, Erdogan has explicitly demanded that the United States extradite Fethullah Gulen, the Muslim cleric allegedly responsible for the 2016 coup (though Turkey has failed to convince USA justice officials of Gulen's role in the revolt).

Erdogan said high foreign exchange rates were the means used in plots against Turkey.

Negotiations failed to achieve the desired results, prompting the Turkish government to try more aggressive tactics, regardless of their costs to the country's economy and worldwide standing.

His comments on interest rates - and his recent appointment of his son-in-law as Finance Minister - have heightened perceptions that the central bank is not independent.

It said it would support steel and aluminium exporters on all worldwide platforms, and the USA remained an important trade partner.

"It's still the case that the euro and Australian dollar are most readily in the firing line, given concerns over euro zone exposure to Turkey and the Aussie's status as the market's preferred EM/risk proxy", NAB's Attrill said of the impact of the falling lira on Group-of-10 currencies.

"You arrest my Halkbank general deputy director?"

Mr Trump intensified his spat with Turkey by imposing the higher tariffs, putting unprecedented economic pressure on a North Atlantic Treaty Organisation ally and deepening turmoil in Turkish financial markets.

"Turkey expects other member countries to abide by worldwide rules", the country's trade ministry said in a statement.

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