2018.08.1510:46:00UTC+00Turkey's Tariff Hike On US Imports Boosts Lira

Turkish President Recep Tayyip Erdogan signed a decree Wednesday steeply raising the import tariffs on a number of US products.

As per the presidential decree, Turks will have to pay 120 percent duty on cars imported from the United States. Tariff on alcoholic drinks has been increased to 140 percent, and on leaf tobacco to 60 percent.

American cosmetics, rice and coal also will become more costly in Turkey.

Turkey's vice-president Fuat Oktay said it was in response to deliberate US attacks on the European country's already weakened economy.

"The import duties were increased on some products, under the principle of reciprocity, in response to the US administration's deliberate attacks on our economy," Oktay wrote on Twitter Wednesday.

The retaliatory move helped Lira to regain its losses by 3 percent. The currency was trading at 6.4125 to the US dollar.

The Turkish currency had plunged to record lows due to diplomatic row with the US, losing more than 40 per cent of its value against the dollar this year.

Erdogan took the action a day after threatening to boycott U.S. electronic goods, including Apple's flagship iPhone device.

The United States had doubled tariffs on Turkey last week over its refusal to extradite U.S. pastor Andrew Brunson imprisoned in the country.

U.S. President Donald Trump's announcement Friday that he would increase tariffs on steel and aluminum originating from Turkey had an adverse effect on the Turkish market, with the lira and the stocks dropping sharply.?

Turkey, which is America's European ally, accused Washington of stabbing it in the back by imposing sanctions despite being NATO partners.