Erdogan noted that Ankara has no intention of tolerating the situation when an economic war had been declared against the whole world, with pressure exerted on some countries, which are threatened with sanctions.
"I have just authorized a doubling of tariffs on steel and aluminum with respect to Turkey as their currency slides rapidly downward against our very strong dollar", The US president said on Twitter.
President Trump's discarding of the Iran nuclear deal is a point of contention, as well, as almost half of Turkey's oil imports come from Iran, meaning new sanctions against Iran come back and hurt the Turkish economy as well.
Turkey's President Recep Tayyip Erdogan addresses his supporters in Bayburt, Turkey, Friday, Aug. 10, 2018. But some investors fear the Turkish economy is growing too quickly and could face problems.
Waves from the crisis spread overseas, with investors selling off shares in European banks with large exposure to the Turkish economy.
Omarosa says she secretly taped her White House firing, plays audio
The book also claims that Mr Trump behaves "like a dog off the leash" at events he attends without his wife, Melania. The truly troubling thing about the tape, as an alarmed Twitter quickly picked up on, is that it exists at all.
Independent analysts argue the central bank should instead raise rates to tame inflation and support the currency.
"If they have their dollar, we have the people, we have Allah", he said, as the lira continued to fall.
"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira", he said on national television.
Erdogan on Thursday portrayed the currency drop as a "campaign" to harm Turkey and called on the people not to worry.
Erdogan added that Turkey was not afraid of "threats" and said it had many alternative sources of economic cooperation "from Iran, to Russian Federation, to China, and some European countries".
One of the hard issues affecting U.S.
According to figures from the Turkish Government, for the period of 2002 to October 2017, Turkish direct investments in the United States reached $3.7 billion while USA investments in Turkey amounted to $11.1 billion, second only to the Netherlands' 21.6 billion. He wrote and Washington's unilateral actions against Turkey undermine American interests and force Ankara to search for new allies.
In a separate opinion piece in the pro-government newspaper Daily Sabah, Erdogan's spokesman Ibrahim Kalin said Turkey's efforts to solve the crisis with diplomatic methods have been dismissed by the Trump administration, warning that Washington might completely lose Ankara as an ally. He claims higher rates lead to higher inflation - the opposite of what standard economic theory says.
This story is based in part on wire service reports.