Turkey won't change its course due to economic pressure from outside, Turkish President Recep Tayyip Erdogan said August 18 before the Sixth Congress of the Turkish Justice and Development Party, Turkish media reported. "The Europeans will maintain the existing objections to certain Erdogan policies and continue to voice their concerns, but that won't stop them from developing pragmatic cooperation with Turkey", he said.
President Donald Trump doubled tariffs on Turkish metals exports to the United States last week prompting Turkey, which says it will not bow to threats, to raise tariffs on U.S. cars, alcohol and tobacco by the same amount on Wednesday.
Turkey sent troops into northern Syria two years ago to fight against the Kurdish People's Protection Units (YPG).
It said: "The downgrade reflects our expectation that the extreme volatility of the Turkish lira and the resulting projected sharp balance of payments adjustment will undermine Turkey's economy".
Mr Trump's comments came after a court in Izmir province rejected an appeal to release Brunson from house arrest, saying evidence was still being collected and the pastor posed a flight risk, according to a copy of the court ruling.
In retaliation, Turkey on Wednesday imposed tariffs on certain USA goods.
The United States has already imposed sanctions on two Turkish government ministers and doubled tariffs on Turkish steel and aluminum imports.
Trump attacks Turkey, vows to pay 'nothing' for US pastor's release
The collapse of the currency has been blamed both on the tensions with the United States and Erdogan's increasing hold on Turkey's economy and his refusal to allow the central bank to raise interest rates. "Would the amount of Turkey's debts decrease?"
Erdogan has remained defiant, urging Turks to sell their gold and dollars for lira.
The lira has weakened 35 per cent against the dollar this year as the deterioration in ties between the North Atlantic Treaty Organisation allies fuelled losses driven by concerns over President Tayyip Erdogan's influence over monetary policy.
The Committee of Concerned Scientists has compared the Brunson case to that of Serkan Golge, a NASA scientist who was arrested at the time of the coup attempt and was sentenced to more than seven years in prison for alleged links to Gulen's group.
Turkey has been pushing back against USA pressure, insisting that it will determine its own economic policies and choose its own trade partners.
Turkey, in turn, criticized the prosecution in the USA of Mehmet Hakan Atilla, a top official at Turkey's state-controlled Halkbank who was convicted of helping Iran avoid US sanctions.
The White House stance appeared to give Turkish authorities little incentive to work for the release of Andrew Brunson, a pastor on trial in Turkey on terrorism charges and whose case Turkish officials have said was a matter for the courts. He criticized Turkey for "holding our wonderful Christian Pastor".
Telecom lifts Nasdaq, Dow and S&P close with modest losses
Rite Aid fell 11.5 per cent after the drug store chain and USA grocer Albertsons Cos agreed to terminate their merger agreement. The number of Americans filing for unemployment benefits unexpectedly fell last week, a Labor Department report showed.