After the Trump administration said it would review the Duty Free access enjoyed by Turkey, the Lira dropped to a record low on Monday as reported by Reuters.
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Trump administration has waged a tariff war against some of the long standing trade partners citing various reasons including China, the EU, Canada, and Turkey. While China is a traditional rival of the US, Turkey has been a NATO ally that stood with the US until a few years ago when the relationship became bad due to differences in Middle East politics including the Syrian war and the 2016 Turkish coup d’état attempt.
The new revision, if came to effect, would affect approximately $1.66 billion worth of Turkish exports to the US. “Turkey has imposed additional tariffs on $1.78 billion of U.S. imports only and not to other trading partners. USTR is launching a self-initiated GSP eligibility review of Turkey based on concerns related to its compliance with the GSP market access criterion” the Office of the United States Trade Representative said on their website.
Of all imports from Turkey to US in 2017, 17.7% fall under the GSP progamme. The website also mentions, “a public hearing and comment period for Turkey’s GSP eligibility review will be announced in an upcoming Federal Register notice.”