Turkey's currency is plummeting, and Trump just doubled tariffs
An economic power play has sent Turkey's currency into a downward spiral.
The Turkish lira plunged more than 16 percent on Friday, while tensions simultaneously escalated between Turkish President Recep Tayyip Erdogan and President Trump, The Wall Street Journal reported.
Turkey's fragile economy already had investors worried about future financial health, with the lira down 23 percent against the U.S. dollar in the past week. Erdogan seemingly added fuel to the fire when he made a defiant speech on Friday, saying "Turkey won't surrender to economic hitmen" and blaming an "interest rate plot" that amounted to "a military coup attempt."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Trump did not take warmly to Erdogan's declaration of "economic war," announcing on Twitter that he would double tariffs on steel and aluminum. "Our relations with Turkey are not good at this time," Trump wrote.
The declining lira, which is at a record low, could frazzle markets all over Europe, CNN Money reports, especially now that experts expect that Turkey will need to take emergency action. "It's not clear that Turkey will be able to step back from the brink this time around," said William Jackson, an economist at Capital Economics.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Summer Meza has worked at The Week since 2018, serving as a staff writer, a news writer and currently the deputy editor. As a proud news generalist, she edits everything from political punditry and science news to personal finance advice and film reviews. Summer has previously written for Newsweek and the Seattle Post-Intelligencer, covering national politics, transportation and the cannabis industry.
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
What's next for electric vehicles under Trump?
Today's Big Question And what does that mean for Tesla's Elon Musk?
By Joel Mathis, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Would Trump's tariff proposals lift the US economy or break it?
Talking Points Economists say fees would raise prices for American families
By Joel Mathis, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published