EU May Delay First Counter-tariffs against US to Mid-April

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
TT
20

EU May Delay First Counter-tariffs against US to Mid-April

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo

The European Union could delay imposition of a first set of counter-measures against the United States over President Donald Trump's steel and aluminium tariffs until mid-April, European Trade Commissioner Maros Sefcovic said on Thursday.

The European Commission had proposed re-imposing tariffs on 4.5 billion euros ($4.9 billion) of US products on April 1, followed by hitting a further 18 billion euros of US goods on April 13, Reuters said.

"We are now considering to align the timing of the two sets of EU counter-measures so we can consult with member states on both lists simultaneously, and this would also give us extra time for negotiations with our American partners," Sefcovic told a hearing at the European Parliament.

The first set of EU counter-measures includes applying a 50% tariff on US bourbon. Trump threatened to slap a 200% tariff on all wines and other alcoholic products coming from the EU if the bloc went ahead with this.

The Trump administration is also planning further tariffs on April 2.

French Prime Minister Francois Bayrou said on Sunday that the EU was probably mistaken in targeting American whiskey, while Italian Prime Minister Giorgia Meloni cautioned EU partners on Tuesday against escalating the trade dispute with the United States.

"I am not certain that responding to tariffs with more tariffs is necessarily a good deal," Meloni, who is close to Trump, said.



Türkiye Spends $12 Billion Defending Lira After Erdogan Rival’s Arrest

Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)
Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)
TT
20

Türkiye Spends $12 Billion Defending Lira After Erdogan Rival’s Arrest

Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)
Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)

Türkiye’s central bank burnt through almost $12 billion defending the lira in a record intervention after President Recep Tayyip Erdogan’s detention of his political rival triggered a political crisis that scared investors and sent the currency reeling.

The bank spent $11.5 billion propping up the currency on Wednesday after the detention of Istanbul’s mayor, Ekrem Imamoglu, the most prominent leader in Türkiye’s political opposition, said a person with knowledge of the matter and calculations based on official data by Burumcekci Research and Consultancy, the Financial Times reported.

It said the intervention was nearly four times larger than any previous such move on the bank’s official records.

It came after the lira plunged as much as 11% against the US dollar to a record low on Wednesday as Erdogan’s move against Imamoglu ignited a stampede out of the Turkish markets.

Please use the sharing tools found via the share button at the top or side of articles.

One Turkish banker told the Financial Times that the officials had “lost control” of the market early on Wednesday, adding it had “left a scar” on investors’ confidence.

JPMorgan Chase, a significant player in emerging market finance, also noted “lira liquidity was impaired amid large outflows” on Wednesday.

Analysts say the central bank likely continued intervening in the market on Thursday and Friday. Policymakers have taken other steps to soothe markets this week, including holding an emergency central bank meeting on Thursday in which a key overnight interest rate was increased in an attempt to keep local savers in lira accounts rather than switching to dollars.

The actions have eased the lira’s decline, leaving the currency down 3% for the week, though Istanbul’s Bist 100 share index tumbled almost 8 percent on Friday in its worst week since 2008.

On Sunday, Bloomberg said Turkish central bank officials held a “technical meeting” with commercial lenders to prepare for potential market volatility after a key opposition politician was formally arrested.

The meeting discussed “the latest developments in markets,” according to a statement from the Turkish Banks Association.