The two North Atlantic Treaty Organisation allies have been at odds over a wide range of issues: diverging interests in Syria, Ankara's ambition to buy Russian defence systems, and more recently the case of Andrew Brunson, an evangelical pastor on trial in Turkey. "This is Turkey", he said.
Brunson, who faces up to 35 years in prison, was transferred to house arrest on July 25 as his trial continues.
The two sides seemed to have failed to resolve the deadlock though bilateral talks in Washington earlier this week during the visit of a Turkish delegation headed by Deputy Foreign Minister Sedat Onal and made up of officials from Turkey's justice, finance and foreign ministries.
"I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!" Financial upheaval risks further destabilising an already volatile region.
"There is no economic reason for the present (currency plunge) situation".
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.
Turkish Treasury and Finance Ministry announced a "new economic model", aiming to stabilize their economic growth.
"We are preparing to trade in our local currencies with the countries that we have the largest trade volume such as China, Russia, Iran, and Ukraine".
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He also repeated his call to Turks to sell their dollar and euro savings to shore up the lira.
"If you have dollars under your pillow, take them out".
"If they have the dollar, we have Allah", he said.
The Turkish president also pointed out that Turkey was considering other markets and political alternatives to its "strategic partnership" with Washington, branding again the currency crash as an "economic war".
Erdogan appeared to indicate that the entire alliance between Turkey - which joined North Atlantic Treaty Organisation in 1952 with strong American backing - and Washington was at stake.
Turkey, home to the Incirlik air base which is used by US forces in the Middle East, has been a North Atlantic Treaty Organisation member since the 1950s.
Washington slapped sanctions on Turkey's interior and justice ministers this week, angering Ankara which responded with the tit-for-tat move, with Turkey saying they will freeze the assets of the U.S. "justice and interior ministers" last week.
"The entire Turkish public is against USA policies that disregard Turkey's legitimate security demands".
The Trump administration has in recent months imposed sanctions against Turkey, Iran and Russian Federation, creating what has been dubbed an "axis of the sanctioned".