Turkey's Erdogan pledges boycott on United States electronics


"We will see that our Turkish lira will be even stronger", he added.

"There is a cost for those who are plotting the operation" against Turkey, he said in televised remarks from Ankara, without specifying when the boycott would start or how it would be enforced.

The currency, the lira, tumbled against the dollar last week when President Trump said he was doubling tariffs on imported Turkish metals to punish Erdogan for refusing to free an American pastor now on trial in Turkey.

Behind the scenes, however, diplomatic dialogue appears to have resumed. Trump's top national security aide warned Turkey's ambassador on Monday that the US has nothing further to negotiate until Brunson is freed, according to two people familiar with the matter.

More than 30 percent of the lira's loss has come since June, when Erdogan took over the office with new sweeping powers. The Turkish currency has lost about 40 percent of its value this year against the USA dollar.

Turkey and the U.S. also disagree over their military interventions in the Syria war, Ankara's plan to buy missile defense systems from Russian Federation and the USA conviction of a Turkish state bank executive on sanctions-busting charges in January.

"There is a price we're paying for the period we're in", he said in a combative speech in Ankara.

Why is Erdogan mad at the United States?

On Tuesday, he said the government is working on steps to help banks and support companies affected by the currency crisis.

Meanwhile, the lawyer representing Andrew Brunson, the American pastor at the center of the dispute, renewed an appeal for his release from house arrest and for a travel ban imposed on him to be lifted.

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Brunson, important to Trump and his Vice President Mike Pence as a Christian known in the evangelical community, then went on to become the stated reason for USA sanctions on Turkey that tanked its economy.

The country also faces a year-on-year credit deficit if $57bn, or 7 percent of Gross Domestic Product (GDP), and growing unemployment. In other words, Turkey relies on Apple more than Apple relies on Turkey.

In addition, Turkey's national airline and its main telecoms firm announced they will halt advertising in the U.S. media.

On Tuesday, Russia Foreign Minister Sergey Lavrov said that Russia supported doing trade with Turkey using local currency instead of dollars.

Independent economists caution it would be hard to unseat the dollar as the top reserve currency as it is used widely in the global economy, for example to trade in oil and for commercial deals.

"We can't be fighting with everybody and at the same time expect that the economy will correct itself", Selcuki said. "Such policy can't be a basis for normal dialogue and it can't last long". The two that didn't do as much: Turkey and South Africa and their currencies have been whacked the most.

Erdogan says Turkey is the target of an economic war, and has made repeated calls for Turks to sell their dollars and euros to shore up the national currency.

Despite the harsh talk against Apple, The New York Times reports that Erdogan and his officials are frequently seen with iPhones in their hands. They also said Turkey should work to resolve the situation with the United States diplomatically while also improving relations with another major trading partner, the European Union. This difference between import and export of goods and services has been filled through external borrowing in foreign currency.