On the morning of August 10, U.S. President Donald Trump intensified these divisions by tweeting that he had authorized a doubling of tariffs on Turkey's steel and aluminum, rising to 20 percent on aluminum and 50 percent on steel.
"I have just authorised a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!"
"This innocent man of faith should be released immediately", Trump previously wrote on Twitter when it became clear Turkey would not release the evangelist, who was ordered to be held under house arrest. The president launched his steel and aluminum tariffs on the grounds that maintaining a robust domestic metal industry was a core national-security interest of the United States, and that competition with metal imports was threatening to drive said industry into extinction. "Turkey's awkward diplomatic relations with the west, and the USA in particular, also need to be addressed and remain a deep concern for foreign investors".
But analysts say that while there may be losses at some banks, Turkey's economic problems do not pose a big threat to Europe or other big economies like the United States. Aluminum will now be 20% and Steel 50%.
Erdogan, who says a shadowy "interest rate lobby" and Western credit ratings agencies are attempting to undermine Turkey's economy, said Turks should exchange their gold and dollars into lira to help the currency.
Turkey's ever combative President Recep Tayyip Erdogan vowed to not bow to economic pressure. On Friday, he said the country had to take steps in answer "to those who have waged an economic war against us".
"If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks". Earlier this month, the USA slapped sanctions against Turkey's ministers of justice and interior in response to Brunson's detention. On 26 July, Trump and Vice President Mike Pence threatened sanctions if Brunson was not instantly released.
Canada's main stock index also fell on Friday.
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.
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But within days, Trump himself backed away from the deal, saying talks would "probably have to use a different structure". Over the weekend, Trump told a rally he holds the advantage over China, adding playing hardball on trade is "my thing".
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The issue that global investors now need to take into consideration is that the recipe for a currency crisis in Turkey is now presenting a risk of a contagion knock-on effect across other markets. Turkey answered the March tariff announcement by placing its own tariffs on $267 million of USA goods.
There are more than a dozen USA energy pipelines on the drawing board, some of which are still seeking financing. The predictable result is this has made inflation get out of control - it is up to 15.9 percent when they are supposedly trying to keep it to 5 percent - because the central bank has been so slow to raise rates, and, in fact, refused to do so at its most recent meeting.
Washington this month imposed sanctions on senior Turkish officials, angering President Recep Tayyip Erdogan and prompting retaliatory measures by Ankara.
The lira fell as much as 18 per cent against the US dollar in its worst day since Turkey's financial crisis of 2001.
The Turkish president on Friday dismissed such concerns and called for people to defend the currency.
"At the same time, the new USA sanctions against Russian Federation have unleashed concern in the German economy", he added.
"I have full confidence in this government, I'm sure it will find a way out and reverse the trend", said Erdogan supporter Sabahattin.
Turkey's sovereign dollar-denominated bonds tumbled with many issues trading at record lows.