• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Politics

Allies in Name Only? The U.S. and Turkey Slug It Out

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Bloomberg
Down Arrow Button Icon
July 31, 2018, 12:29 PM ET

Donald Trump’s tweets often come out of the blue, but his July 26 threat to sanction ally Turkey capped a crescendo of reproaches between the NATO allies since an attempted coup against the government of President Recep Tayyip Erdogan two years ago. Though Trump’s warning was sparked by Turkey’s refusal to release an American pastor imprisoned in 2016, strains had been building over an array of issues. The latest flare-up sent Turkish financial markets plunging.

1. What does the coup attempt have to do with the U.S.?

For Erdogan, the failed coup of July 2016 remains a festering sore. So does Washington’s reluctance to extradite Fethullah Gulen, the Turkish cleric living in exile in Pennsylvania whom Erdogan accuses of orchestrating the botched putsch. Claiming that Gulen’s followers had set up a “deep state” by infiltrating security services, schools and courts, Erdogan initiated a purge of the civil service that’s cost about 130,000 people their jobs. American officials say Turkey’s evidence against Gulen, who moved to the U.S. two decades ago and lives in a compound in the Pocono Mountains, is insufficient to extradite him.

2. What triggered the most recent squabble?

Evangelical preacher Andrew Brunson, an American, spent two years in a Turkish jail on charges of involvement in the July 2016 coup attempt. He was released to house arrest in late July, but that wasn’t enough for the Trump administration, which demands he be freed. While Turkish officials say the Brunson case is a judicial matter and not political, Erdogan deepened U.S. suspicions that the pastor was being held as a bargaining chip when he suggested last year that Turkey could release him in exchange for Gulen. “Give a pastor, take a pastor,” he said.

3. What else is straining ties?

Other big issues are differences over the war in Syria, a Turkish banker’s conviction in the U.S. for helping Iran evade U.S. financial sanctions and Ankara’s plans to purchase a missile defense system from Russia that isn’t compatible with those used by other members of NATO. Turkey alleges the U.S. court decision against Mehmet Hakan Atilla, former head of international banking at state-owned Halkbank, relied on fabricated evidence given by followers of Gulen. The S-400 missile deal and other tensions have prompted some U.S. lawmakers to call for a halt in sales of F-35 military jets to Turkey, even though several key parts of the fighter are made there.

4. What are the divisions over Syria?

Under President Barack Obama, the U.S. decided its most reliable ally in the fight against Islamic State in Syria was a Kurdish-led militia, and gave it extensive support. That riled Turkey, which sees the militia as an affiliate of a rebel Kurdish group that’s been fighting for autonomy inside Turkey for more than three decades. Turkey called on Trump to reverse Obama’s policy, but instead he doubled down and decided to directly arm the Syrian Kurds. Turkish forces have attacked the American-backed Kurds in Syria.

5. Why are Turkey’s markets so jittery?

Turkey has a large current-account shortfall and relies heavily on short-term foreign capital inflows to plug the gap. Any development — like sanctions — that would slow the flow of funds into Turkey or irk investors would pile pressure on its currency. The lira is grazing a record low against the dollar after sliding more than 20 percent this year, feeding double-digit inflation and hampering companies’ ability to pay back their foreign-currency debts.

6. Is Turkey looking elsewhere for allies?

Ties are warming between Turkey and Russia, even though they supported opposing sides in the Syrian civil war and Turkey shot down a Russian warplane backing Syrian government forces, saying it entered its airspace. Now, Erdogan is on board with a Russian-Iranian truce plan for four areas in Syria, and has sent troops to assist in its execution. After meeting Russian President Vladimir Putin at a summit of leaders representing emerging economies in late July, Erdogan said their collaboration “is really making someone jealous,” Turkish media reported.

7. What could keep Turkey in the U.S.’s orbit?

While Turkey warned that threatening U.S. language could damage relations, common interests have prevented past disputes from escalating into a permanent rupture, and they haven’t gone away. Turkey depends on short-term foreign investments from Americans and others who take a lead from Washington. Meanwhile, the U.S. is short of dependable allies in the Islamic Middle East, a region where Russia and its ally Iran are ascendant. Trump is promising a much tougher line against Iran, and may not want to push Turkey — which has NATO’s second-biggest army — too far into the opposing camp.

About the Author
By Bloomberg
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Trump says a ‘final proposal’ for a taxpayer-funded takeover of Spirit Airlines is under consideration
PoliticsAirline industry
Trump says a ‘final proposal’ for a taxpayer-funded takeover of Spirit Airlines is under consideration
By Michelle L. Price, Rio Yamat and The Associated PressMay 1, 2026
3 hours ago
U.S. to withdraw 5,000 troops from Germany as Trump feuds with Merz over the Iran war
EuropeGermany
U.S. to withdraw 5,000 troops from Germany as Trump feuds with Merz over the Iran war
By Ben Finley and The Associated PressMay 1, 2026
3 hours ago
EBay soars on report that GameStop is preparing a takeover bid
Investingecommerce
EBay soars on report that GameStop is preparing a takeover bid
By Spencer Soper, Cecilia D'Anastasio and BloombergMay 1, 2026
3 hours ago
ExxonMobil CEO Darren Woods, far right, listens as U.S. President Donald Trump,left, speaks during a meeting with oil company executives in the East Room of the White House on Jan. 9. President Trump is aiming to convince oil executives to support his plans in Venezuela, a country whose energy resources he says he expects to control for years to come. US forces seized Venezuelan president Nicolas Maduro in a sweeping military operation on January 3, with Trump making no secret that control of Venezuela's oil was at the heart of his actions.
EnergyIran
Exxon Mobil CEO sees ‘more to come’ on price spikes from Iran war as Exxon, Chevron beat on earnings despite plunging profits
By Jordan BlumMay 1, 2026
5 hours ago
trump
PoliticsIran
Trump on Iran: ‘They want to make a deal, I’m not satisfied with it, so we’ll see what happens’
By Toqa Ezzidin, Munir Ahmed, Collin Binkley and The Associated PressMay 1, 2026
7 hours ago
infantino
North AmericaWorld Cup
Fifa’s Infantino predicted sellouts and ‘1,000 years of World Cups at once,’ but fans aren’t biting
By James Robson and The Associated PressMay 1, 2026
7 hours ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
12 hours ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
1 day ago
The U.S. economy is booming — just not where 50 million Americans live
Commentary
The U.S. economy is booming — just not where 50 million Americans live
By Derek KilmerMay 1, 2026
17 hours ago
Accenture's Julie Sweet blew up 50 years of company history. She says the hardest part is still ahead
Conferences
Accenture's Julie Sweet blew up 50 years of company history. She says the hardest part is still ahead
By Nick LichtenbergApril 29, 2026
3 days ago
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
4 days ago
Exclusive: America's largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth
Banking
Exclusive: America's largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth
By Nick LichtenbergApril 29, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.