Lira tumbles as US terminates Turkey's preferential trade treatment

Dhwani Mehta FXStreet

Reuters reported the latest headlines on trade last minutes, citing that the US terminated the preferential trade agreement with Turkey, as announced by the White House.

Key Details:

Had been allowing some of the country's exports into the US duty-free, but not anymore.

The White House statement: The decision will be effective on Friday, May, 17th.

FT adds: “The US cutting tariffs on Turkish steel to 25 percent from 50 percent.

Reversing a controversial decision taken last August by President Donald Trump to double them

… a sharp drop in steel imports from Turkey over the past year. "Given these improvements, I have determined that it is necessary and appropriate to remove the higher tariff on steel imports from Turkey," Mr. Trump said.”

The Turkish Lira fell to fresh three-day lows versus its American peer on the above headlines, driving the USD/TRY cross to 6.0949 levels.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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