Erdogan calls on Turkey to 'boycott' iPhones and other U.S. electronic goods

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The chargé d'affaires at the US embassy in Turkey, Jeffrey Hovenier, visited Brunson on Tuesday and called for his case - and those of others detained in Turkey - to be resolved "without delay" and in a "fair and transparent manner".

"We will boycott electronic goods from the United States", the president said, raising the stakes in a spat with Washington following the detention of U.S. pastor Andrew Brunson on terror-related charges.

The American pastor at the centre of the spiralling diplomatic row between the U.S. and Turkey has launched a new bid for freedom 22 months after he was detained on terror-related charges.

"We are going to apply a boycott on America's electronic products", Erdogan said Tuesday during a televised speech, adding that there were alternatives, produced by South Korean or Turkish companies.

With Turkey's currency crashing, the government's response has been to blame outsiders and double down on a bad economic policy that is only making it worse. But Sanders, at a Tuesday press briefing, declined to say how the US government plans to apply more pressure on Ankara, which repeatedly has ignored calls from Trump and others to free Christian pastor Andrew Brunson. Arrested in 2016, Brunson faces terror and espionage charges.

The currency has been steadily declining for the past year. And as Nicholas Colas, co-founder of DataTrek Research, wrote in a note Tuesday morning, the drop in the price of gold in the face of an emerging markets currency crisis reflects confidence that Turkey's problems will not spill over to the USA economy or derail the Federal Reserve from raising rates. "Companies like Huawei, for example, which increased its smartphone shipments in Turkey by over 200 percent in the past year", he added.

Erdogan's opposition to high interest rates, which he has described as "the mother and father of all evils", is well documented and the Central Bank's reluctance to raise the cost of borrowing has led to its independence being questioned.

Instead of authorities addressing structural weaknesses, the government insisted on boosting the Turkish economy by a policy of low interest rates.

What about the Turkish economy?

"The global backdrop has changed and is now less supportive for Turkey, rendering political bluster ever more economically damaging, especially in the context of a heightened Iran-related sanctions from the U.S". Last week it dropped 16 percent in one day.

He has also urged manufacturers not to rush to buy USA dollars. It rebounded on Tuesday as Turks sold dollars. Those loans are suddenly getting more expensive to repay, raising the possibility of corporate bankruptcies or bank failures.

A similar plea came from the nation's banks, including the second-largest by assets, Turkiye Garanti Bankasi AS. Shares in Germany's Deutsche Bank also slid on broader concerns about its exposure to Turkey's economic woes. There is a fear the resulting financial meltdown could spread to other markets.

US and global markets fell on Friday and Monday, reflecting concerns that Turkey's problems could spread. But American companies' direct contact with the Turkish economy is quite limited.

It follows the lira's record plunge of up to 18 percent on Friday, Aug. 10, which forced Turkey's finance minister to announce an economic action plan in a bid to ease nerves. "Turkey will be stronger at the end of this process". Trump said: "'I need some traction on the pastor first.' When Erdoğan said OK he meant that we are working on it".

The ruckus between Turkey and the U.S. has impacted on other countries' currencies, including the Indian rupee, as investors fear the lira's wobbles could spread to developing nations.

"We are already seeing some signs of contagion".

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