Economic orthodoxy demands interest rate hikes to defend a suffering currency, something that Turkey has refused to do, with President Recep Tayyip Erdogan appearing to have tied the central bank's hands.
"Turkey is faced with an economic siege", Erdogan said Monday, in the latest of a series of speeches.
Erdogan has not backed down over the rift with the U.S. and has used the ensuing crisis to his advantage by blaming it on a foreign conspiracy, telling party members in the city of Trabzon on Sunday: "The aim of the operation is to make Turkey surrender in all areas from finance to politics".
Actress Ebru Özkan was released the next day, while the pastor was moved from prison to house arrest.
These import taxes came on top of 10% additional tariffs on aluminum and 25% on steel from all countries, in a bid by Trump to protect the United States steel industry and please voters in America's industrial heartland.
The U.S. Charge d'Affaires in Turkey visited Brunson on Tuesday and repeated a call for his case - and that of other U.S. nationals and consular staff - to be resolved fairly, swiftly and transparently. Although he was released to home detention, he faces a prison sentence of up to 35 years if he is convicted at the end of his ongoing trial.
Foreign Minister Mevlut Cavusoglu said Monday that the United States would not achieve aims by exerting pressure and imposing sanctions on Turkey. "In our country we have Venus and Vestel", he said, referring to a Turkish-made phone made by electronics manufacturer Vestel.
Chanting "Damn America", they unfurled a banner saying "we will win the economic war", Demiroren agency said.
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It's not clear how Erdogan would enforce the boycott, the AP noted.
In a televised speech on Friday, he called on Turkish citizens to exchange foreign currency and gold for lira, calling it an "economic war".
Turkey and the USA are now experiencing rocky relations following Washington's imposition of sanctions on Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul for not releasing American Pastor Andrew Brunson, who faces terrorism charges in Turkey. Businesses issued a joint statement asking for "a concrete roadmap" to be prepared "to lower inflation permanently", the newspaper Hurriyet reported.
But "until the crisis in Turkey is over or the market considers it to be an isolated problem, risk aversion is likely to remain elevated which will continue to benefit mainly the currency safe havens", said Antje Praefcke, a currency strategist at Commerzbank in Frankfurt.
Turkey and the United States have disagreed on a number of issues in recent years, including the war in Syria and a US refusal to extradite Fethullah Gulen, a cleric Erdogan claims is behind the botched attempt to unseat him.
As the lira slid to new lows yesterday, down as far as 7.24 to the United States dollar, with further falls in currencies from the South African rand to the Mexican peso, it was an unwelcome reminder of past emerging market crises. It remains not far from the record low of 7.23 per dollar hit Sunday.
The MSCI index which groups around 20 emerging market currencies is at its worst level seen in a year.