“President Recep Tayyip Erdogan vowed to boycott iPhones in a demonstration of defiance as the U.S. held firm to its demand that Turkey release an evangelical pastor and Turkish executives called for action to bolster the lira,” Onur Ant reports for Bloomberg. “Erdogan said the nation of 80 million people would stop buying American electronics, condemning the ‘explicit economic attack’ against his country. The lira lost a quarter of its value this month as Donald Trump doubled tariffs on Turkish steel and aluminum imports and slapped sanctions on two ministers. It rebounded on Tuesday as Turks sold dollars.”
“‘There is a cost for those who are plotting the operation’ against Turkey, Erdogan said in televised remarks from Ankara, without specifying when the boycott would start or how it would be enforced,” Ant reports. “Singling out the iPhone, he suggested Turks buy Samsung Electronics Co. or locally made Venus Vestel smartphones instead.”
“While even a widespread Turkish boycott would do little to dent U.S. economic interests, it shows Erdogan refusing to give in to market turmoil that’s pushed borrowing costs to record highs and threatens to descend the nation into a financial crisis,” Ant reports. “Tensions between the two NATO allies have intensified amid a dispute over the detention of Andrew Brunson, whom Turkey accuses of aiding a failed coup. Trump’s top national security aide warned Turkey’s ambassador on Monday that the U.S. has nothing further to negotiate until Brunson is freed, according to two people familiar with the matter.”
“Policymakers need to adopt a series of measures ‘so that the situation doesn’t make permanent damage to the real economy,’ the Union of Chambers and Commodities Exchanges of Turkey and the Turkish Industry and Business Association said in a joint statement,” Ant reports. “They called on the government to cut spending, improve ties with the European Union, bring to an end the spat with the U.S. and chart out a clear plan to bring inflation — which soared to a 15-year high of almost 16 percent in July — back to single digits permanently.”
Read more in the full article here.
MacDailyNews Take: “Buy inferior knockoffs instead” is not a winning move.