‘If they have dollar, we have our Allah’: Erdogan

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"Aluminum will now be 20% and Steel 50%".

The United States, the world's biggest steel importer, imposed tariffs of 25 percent on steel and 10 percent on aluminum in March for imports from a variety of countries. Turkey answered the March tariff announcement by placing its own tariffs on $267 million of US goods.

Erdogan has cast the recent slide in the lira as a war and without naming countries said supporters of a failed military coup two years ago, which Ankara says was organized by a USA -based Muslim cleric, were attacking Turkey in new ways since his re-election two months ago.

This prompted yet another tweet from President Trump, this time announcing the actual authorization of the doubling of tariffs on steel and aluminum for Turkey. The lira slid to a fresh record low against the US dollar.

The lira has fallen more than 35 percent this year after losing almost a quarter of its value in 2017.

President Tayyip Erdogan blamed the United States for the plunge in a speech last night, but why is the lira falling? The weakened currency's value has helped increase inflation and anxious global investors.

Iran has also suffered a major tumbling of its currency this year partly over the reimposition of U.S. sanctions after Trump abandoned the 2015 nuclear deal.

Waves from the crisis spread overseas, with investors selling off shares in European banks with large exposure to the Turkish economy.

President Recep Tayyip Erdogan's current dash for growth coupled with unorthodox pronouncements on monetary policy - including that lower rates can bring down inflation - have put him on a collision course with markets.

TRY stays sceptic on Erdogan's nationalist tone.

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"This will be my people's response to those who have waged an economic war against us", he said.

"If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks", he said during an address to supporters. He urged Washington to give up the misguided notion that bilateral relations could be "asymmetrical" and realize that Turkey had alternatives "before it is too late".

The president also mentioned USA support for the PKK's Syrian affiliate, the People's Protection Units (YPG) in northern Syria, as another source of frustration. After allegedly participating in a failed coup in 2016, Brunson is facing espionage and terrorism charges. Brunson is on trial and faces up to 35 years in prison if he is found guilty.

After Brunson had been in jail for nearly 20 months, a court in July ordered him to be moved to house arrest.

Why is the White House hitting Turkey with tariffs?

Dryden, of JPMorgan Asset Management, said Erdogan has replaced independent advisers and leaders with relatives and supporters and set off a "gradual process of eroding economic credibility among financial and economic institutions".

He added: "Relations with countries who behave like this have reached a point beyond salvaging".

Erdogan had on Friday held a phone call with Russian President Vladimir Putin to discuss economic and trade issues as well as the Syria crisis.

Presenting the government's new economic model, he said the next steps of rebalancing would entail lowering the current account deficit and improving trust.