On Friday the currency dropped as much as 18% at one point, the biggest one-day fall since a 2001 financial crisis in Turkey.
The currency is down about 40 percent so far this year. What possible reason could there be behind the lira which was at 2.8 against dollar in July 15, 2016 to slide below 6 yesterday?
"Our relations with Turkey are not good at this time!".
"Emerging market economies move more aggressively; the knee-jerk reaction is stronger".
Turkish President Recep Tayyip Erdogan said Turks should not be alarmed by exchange rate movements.
When the lira crashed, Iran threatened Mr Trump and said that the "entire world would unite" and use "force" the U.S. to scrap the sanctions.
Turkey's trade ministry said the tariffs were against World Trade Organisation rules.
Last week, the United States imposed sanctions on Turkey's justice minister and interior minister for not releasing US pastor Andrew Brunson.More news: China retaliates with additional tariffs on $16B worth of U.S. goods
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According to a source in Erdogan's office, the two said they were pleased with the positive direction in their economic and trade ties and with the ongoing cooperation in the energy and defense sectors.
"We know very well that the issue is not dollar, euro or gold. This is a national, domestic battle", he said. "They are bullets, cannonballs and missiles of an economic war waged against our country", he said.
In the New York Times, Erdogan warned Washington not to risk relations with Ankara, saying his country would otherwise look for "new friends and allies". At the beginning of August, the U.S. Treasury Department sanctioned Turkey's ministers of Justice and Interior because of Brunson's detainment.
Erdogan also appeared to allude to a "deadline" for handing over Brunson, although he did not name the United States as having set any such deadline or say precisely when it might have expired.
"As he stated, the president has authorized the preparation of documents to raise tariffs on imports of steel and aluminum from Turkey", White House Deputy Press Secretary Lindsay Walters said. I am calling on those in America again.
Ankara blames for an attempted coup in 2016. Gulen has denied the allegation.
Turkey has detained Mr Brunson for almost two years, accusing him of links to the outlawed Kurdistan Workers Party and the Gulenist movement, which Turkey blames for a failed coup in 2016.
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.
In the first three months of 2018, Turkish steel exports to the United States fell almost 50 percent over the same period in 2017, making it the only top-10 source of US steel imports to see a decrease, according to the US Commerce Department. He offered no further details.
Mr Erdogan said although the nations had been allies for decades, Turkey "now has alternatives".