Trump's new tariffs on Turkey are actually benefiting Russian Federation

The lira went into free-fall sinking more than 10 percent

It comes as US President Donald Trump doubled tariffs on Turkish steel and aluminium, further hurting the lira.

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.

In an opinion article published in the New York Times on Saturday, Erdogan wrote that Turkey and the US had been strategic partners and North Atlantic Treaty Organisation allies for the past six decades and that his country had repeatedly come to America's aid.

The two governments have clashed over a range of issues including the Turkish detention of US pastor Andrew Brunson on terrorism charges, the USA -backing of Kurdish troops in Syria and Turkey's intention to buy Russian defense systems.

On Friday, as the Lira plunged and the US imposed its higher sanctions on Turkey, Turkish President Erdogan and Russian President Vladimir Putin spoke on the phone.

The lira tumbled about 10 per cent on Friday to another record low as investors worry about Erdogan's unorthodox economic policies and USA sanctions. In his speech in the northeastern city of Bayburt, Erdogan added that he would decisively defend the country against economic attacks. The president - instead of reassuring the markets, whose collapsing confidence is one of the main drivers behind the lira's unprecedented depreciation - slammed Western countries and accused them of waging economic warfare on Turkey.

But Erdogan vowed there would be no easing of the law in Brunson's case, saying: "We have not made concessions on justice so far, and we will never make any".

The latest tariffs stem from the trade fight Trump launched earlier this year with several countries, including Turkey, according to the Washington Post.

But the haemorrhaging reached an unprecedented intensity in the last weeks as Turkey's ties with the United States strained further and markets questioned their trust in Turkish policymakers, pushing the currency to five against the dollar.

Sarri hails players after Chelsea victory
Before the second goal, the Terriers had hit a post through Steve Mounie's header, but it was to be Sarri's and Chelsea's day. France's World Cup victor scuffed a volley into the ground and it took a deflection, before looping into the corner.

The lira tumbled 14 percent Friday, to 6.51 per dollar, a massive move for a currency that will make Turkish residents poorer and further erode global investors' confidence in the country.

Erdogan has been putting pressure on Turkey's central bank to not raise interest rates in order to keep fueling economic growth.

In June, the U.S. Senate passed a bill prohibiting Turkey from buying F-35 fighter jets because of Brunson's imprisonment and Turkey's purchase of Russia's S-400 air defense system.

The United States is the biggest destination for Turkish steel exports with 11% of the Turkish export volume.

Also on Friday, relations between the United States and Turkey have worsened over the fundamentalist Muslim-majority country's detention of American pastor Andrew Brunson, who was arrested by authorities during a post-military coup attempt in 2016.

"Don't forget, if they have their dollars, we have our people, our God", he said.

But Erdogan, who had remained unusually silent until now as the lira crisis mounted, urged Turks to take matters into their own hands.

The trouble is that for all of Albayrak's talk of Central Bank independence, Erdogan is fiercely opposed to any interest rate hikes, which are widely seen as necessary to stem the bleeding. The U.S. responded by slapping sanctions on Turkey and threatening more. There are already ample signs that Trump's aggressive anti-trade rhetoric is dampening global economic activity as trade wars heat up and even risk morphing into currency wars.

People change money at a currency exchange office in Istanbul, Turkey, Aug. 10, 2018.

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