Trump added: "We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!".
Treasury Secretary Steve Mnuchin warned on Thursday that the next series of sanctions against Turkey are coming "soon" unless that nation immediately gives in to demands to free jailed American pastor Andrew Brunson.
"Working with you, we have more that we're planning to do if they don't release him quickly", Mnuchin told the president. His transfer to house arrest came after Trump asked Israeli Prime Minister Benjamin Netanyahu to assist in Brunson's release, Israeli and United States officials told CNN at the time. Sheikh Tamim was the first foreign leader to call Erdogan after the aborted coup in Turkey in 2016, and Turkey - along with Iran - is one of the few countries to support Qatar against the boycott by the Saudi-led Anti-Terror Quartet over Doha's financing of terrorism.
Finance Minister Berat Albayrak assured global investors on Thursday that Turkey would emerge stronger from its currency crisis, insisting its banks were healthy and signalling it could ride out the dispute with the United States.
The lira, which earlier this week traded at well over seven to the dollar, was at 5.8 against the dollar and 6.7 against euro on Friday.
Turkey retaliated with some $533 million of tariffs on some US imports - including cars, tobacco and alcoholic drinks - and said it would boycott USA electronic goods.
Stocks flat as Turkey worries offset U.S.-China trade talks
Debt rating downgrades typically mean higher borrowing costs as investors demand steeper interest rates to take on riskier debt. Turkish markets will be closed from midday on Monday for the rest of the week for the Muslim Eid al-Adha festival.
Nick and his parents arrive in India
The grapevine has been abuzz with rumours that Priyanka Chopra and Nick Jonas are set to have a formal engagement ceremony soon. The source was further quoted as saying, "Everything is very secretive but guests are expected to head there starting tomorrow.
Turkey and USA trade new threats in detained pastor row
The conflict between North Atlantic Treaty Organisation allies is even more personalized because of U.S. Whatever action the United States takes looks likely to cause more pain for Turkish assets.
Erdogan also said on August 14, that Turkey would boycott electronic products from the United States, vowing to substitute foreign imports with domestically produced goods.
"We want to strengthen economic ties between France and Turkey". Turkish officials say the case is a matter for the courts.
Trump's national security adviser, John Bolton, had issued a blunt warning to Turkish ambassador Serdar Kilic when he met him on Monday at the White House, an administration official said on Thursday.
Turkey and its firms face repayments of almost $3.8 billion on foreign currency bonds in October, Societe General has calculated. The currency was supported by Turkey's plan to cut spending, support for the banks and Qatar's pledge to invest $15bn in the country.
Companies that for years have borrowed overseas at low interest rates have seen their cost of servicing foreign debt rise by a quarter in lira terms in two months.
Credit rating agency Standard & Poor's is expected to downgrade Turkey's sovereign credit rating later today.
The Turkish lira is falling against the dollar on Friday after Mnuchin's statement. But the sell-off has increased the cost of servicing that debt, particularly for companies whose revenues are exclusively in lira.