A blow to $ 1 billion: how much the United States will suffer from the duties introduced by Turkey

The United States had more for one trading war - Turkey introduced duties on American goods in response to the intentional “attacks” of the American administration to the country's economy, said Turkish Vice President Foest Octai.

Details

• Additional duties will affect American rice (50%), alcohol (140%) and cars (120%), as well as cosmetics, tobacco and some food.
• Bloomberg calculated that the supply of American goods taxed by duties was estimated at $ 1 billion last year. This amount is similar to assessing the supply of Turkish aluminum and became in the United States, President Donald Trump announced the introduction of duties on Turkish exports last week.
• After the announcement of the introduction of new duties, the dollar fell to the Turkish lyre by almost 4%. However, the main contribution to the strengthening of the Turkish currency did not make duties, but the actions of the Central Bank of Turkey, which halved the limit for operations with swaps.

Context

• This decision was preceded by a statement by Turkish President Recep Tayyip Erdogan, who called for boycotting American electronics and focus on the growth of internal production. “If they have an iPhone, then on the other hand there is Samsung. In Turkey, we have Vestel Venus phones, ” said Erdogan. The United States unleashed the "Economic War" against Turkey because of its high economic indicators, the president emphasized. He noted that Türkiye occupies the 17th in the world a place in terms of the total volume of GDP, and 13th place in the world in terms of GDP, designed for purchasing power parity. We wrote about the causes of the conflict of the United States and Turkey here .
• On Tuesday, the Lyra course first began to grow after a collapse last week. On Monday, the Central Bank of the country was forced to take emergency measures to protect the national currency and, in particular, allocated $ 10 billion to support national banks.
• The conflict of the United States and Turkey provides President Vladimir Putin “Golden Chance” in order to finally lure one of the Western allies to his side, Bloomberg writes . During the meeting of Foreign Ministers of Russia and Turkey, Sergei Lavrov and Mevlut Chavushoglu, the Russian side joined the criticism of American sanctions.

Commenting on the last statement of Erdogan, Bloomberg wrote that from an economic point of view, Erdogan’s response is unlikely to affect the United States, but the statement shows that the conflict due to the fate of the American pastor (Andrew Branson) will not end soon. The publication compares these steps of Erdogan with the actions of Vladimir Putin in 2014, when food imports were prohibited from those who announced sanctions against the Russian Federation of countries. After Turkey increased duties on American goods, there were even more reasons for such an analogy.

Liana Faizova, Artem Gubenko