On October 15th, Beijing time, President Trump said that he would order sanctions against Turkish officials and increase the tariff on steel in Turkey to 50%. At the same time, it terminated the $100 billion trade negotiations that were previously under way with Turkey.

Trump said:

I will soon issue an executive order authorizing sanctions against current and former officials of the Turkish government and anyone who has destabilized Turkey’s operations in northeastern Syria. At the same time, steel tariffs will be raised again to 50%, unchanged from the level before the May cut. The United States will also immediately stop negotiations with Turkey's $100 billion trade agreement led by the US Department of Commerce. The order will authorize a wide range of consequences, including financial sanctions, property blockades and bans from entering the United States.

Market Reaction

In the US, the iShares MSCI Turkey ETF closed down 3.89% to $22.95, the lowest since June 17. After Trump threatened to impose tariffs on Turkish steel products, it once fell to $22.94, the lowest since the June 17th.

After the news, the Turkish lira fell against the US dollar and re-emerged over 0.7%, temporarily reporting 5.9271 lira.