The Turkish lira fell to a record low against the dollar after the administration of US President Donald Trump said it would reconsider Turkey’s entry into the US free market, which could affect Turkey’s $ 1.66 billion in imports, a new escalation of tension between Washington and Ankara.
The US Trade Representative’s announcement came after Ankara announced retaliation for US goods in response to new US tariffs on Turkish steel and aluminum goods.
Tensions between NATO’s partners have been exacerbated by Ankara’s refusal to release a US detainee.
But this tension, along with the new measures, hit the crumbling Turkish lira, reaching a new record high of 5.14 against the dollar at 8 am, according to the Turkish daily Hurriyet.
The Turkish currency has lost a quarter of its value this year, mainly affected by concerns over the dominance of President Recep Tayyip Erdogan over monetary policy.
The US Trade Representative’s Office said the review could affect Turkey’s $ 1.66 billion in imports to the United States.
Turkish goods benefited from the GSP program last year, including cars, spare parts, jewelery and precious metals.
A spokeswoman for the Office of the Trade Representative said the US review had nothing to do with the issues surrounding Pronson’s homecoming, an issue that prompted the United States to impose sanctions on two ministers in the Turkish government.