The US sanctions adopted on Monday against the supply of Turkish steel are too soft and will not become a tangible blow to the Turkish economy, which continues its offensive in northern Syria. This was reported in the editorial of the American business news channel CNBC .
“Trade figures contradict Trump's assertion that these measures are a huge economic blow to Turkey. According to US government statistics, Turkish steel exports to the US have fallen sharply in recent years, meaning that higher duties are likely to have minimal impact on the Turkish economy, ”the article states.
Recall that on Monday, US President Donald Trump issued an order to double the import duty rates on rolled metal products of Turkish origin to deter Turkey from continuing its expanding military offensive against US-allied Kurds in northern Syria.
However, the Turkish lira actually surged on Tuesday after Trump-threatened sanctions were less severe than markets expected.
NATO allies Washington and Ankara are in a tough spot after the Turkish offensive in Syria began on October 9, just days after Trump announced the withdrawal of American troops from the region.
This is now widely criticized as giving up support for America's Kurdish allies. Kurdish militias make up the bulk of the US-backed Syrian Democratic Forces, which CNBC says were instrumental in driving ISIS out of the country along with US forces, but which Turkey considers terrorists.
Turkey ranks 19th on the list of US steel importers by volume, supplying 1.1% of all steel purchased by the country this year. Turkish steel exports to the United States fell 76% between 2018 and 2019, after falling 38% from 2017 to 2018.
“Only 0.5% of Turkish exports were US steel sales in 2018,” Charlie Robertson, chief economist at Renaissance Capital, told CNBC. "Turkey will not allow its sovereignty to be undermined by the United States by refusing to buy steel that Turkey can sell elsewhere."
