Trump tweeted on Friday that he would be doubling existing tariffson steel and aluminum imports from Turkey. He threatened the United States with an "Ottoman slap" if they continue to stand in the way of the Turkish incursion into northwest Syria.
"We are gearing up for trade in national currencies with China, Russia, Iran, Ukraine, which account for the largest bilateral trade volume".
Turkey's currency fell Friday after its economy was rattled by the United States' move to slap the country with moretariffs.
Trump announced the punitive doubling of steel tariffs, which were imposed in protest over the detention of Andrew Brunson, a pastor, who was arrested on terrorism charges after the attempted coup against Erdogan in 2016, saying: "Our relations with Turkey are not good at this time!".
"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".
Meanwhile, Ankara is wanting the extradition of Fethullah Gulen, a Pennsylvania-based cleric who is blamed by Mr Erdogan for masterminding the 2016 coup.
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 had been dismissed by the Trump administration, warning that "the USA runs the risk of losing Turkey" as an ally.
The Canadian dollar weakened to a more-than two-week low against its US counterpart as geopolitical risk rattled global financial markets, offsetting stronger-than-expected domestic jobs data.
After nearly 20 months in a Turkish jail, Mr Brunson was moved to house arrest last month by a court.
His cause resonates with Trump's Christian conservative supporters, who could be influential as Republicans seek to retain control of Congress in midterm elections in November.