US President Donald Trump said on Friday he had doubled tariffs on steel and aluminium from Turkey, adding to pressure on its troubled economy amid a diplomatic row with Washington over the detention of a pastor.
The lira pared some of its losses to trade at 5.9646 against the dollar at 0745 GMT, down 5.5 percent, after slumping as much as 14.6 percent to hit an all-time low of 6.4915 in early trade, according to Reuters data.
Mr Erdogan also wrote in the New York Times that unless the U.S. changed course, Turkey would look for new friends and allies.
Brunson, an evangelical Presbyterian from North Carolina, was jailed for allegedly supporting the group that Turkey blames for the failed coup and was moved from prison to house arrest in July. I am calling on those in America again.
In another opinion piece in the pro-government newspaper Daily Sabah, Mr Erdogan's spokesman, Mr Ibrahim Kalin, said Turkey's efforts to solve the crisis diplomatically had been dismissed by the Trump administration, warning Washington it might completely lose Ankara as an ally. He urged Turkish citizens to immediately exchange their gold and dollars for lira. "Do you think such threats will?"
"We will give our answer, by shifting to new markets, new partnerships and new alliances, to the one who waged an economic war against the entire world and also included our country", Erdogan said.
"If there are dollars under your pillow, take these out".
And in the New York Times?
But the trade minister, Ruhsar Pekcan, said: "We implore President Trump to return to the negotiating table".
In his speech in the northeastern city of Bayburt, Erdogan added that he would decisively defend the country against economic attacks.More news: ‘A Huge Step Backward’: Argentina’s Senate Rejects Bill to Legalize Abortion
More news: Liverpool Jurgen Klopp on ESPN Luck Index: Well deserve our luck more
More news: Manchester United vs Leicester City team news announced
Erdogan also warned that Turkey could start looking for new allies if Washington damaged its relations with Ankara.
He also condemned as "unacceptable, irrational and ultimately detrimental", the sanctions imposed by the USA on several Turkish cabinet members over the Brunson issue.
Asked about the likelihood of a meeting with USA officials, including Pompeo, on the sidelines of the United Nations General Assembly, Zarif said: "No, no such meeting is planned".
"When it comes to cornering Turkey to extract certain concessions that undermine our sovereign rights, it is a whole another story".
Turkey said it would respond to the new US tariff action "without delay" and warned the move would further harm relations between the two countries.
People change money at a currency exchange office in Istanbul, Turkey, Aug. 10, 2018.
What were the latest United States measures?
The US president revealed the action on Friday as he noted how the Turkish lira "slides rapidly downward" against the "very strong" US dollar.
Trump's tweet sent the already-depreciating Turkish lira into free fall, and appeared to bring other developing market currencies - and the euro - down with it.
The comments come amid a spat between the United States and Turkey over Ankara's jailing of an American pastor on spying charges.
Turkey has also been hit by United States sanctions on Iran, given that half of Turkey's oil imports come from Iran.