The US State Department announced on Thursday that Secretary of State Mike Pompeo was considering various economic restrictions and actions aimed at Turkey over its purchase of Russian S-400 missile systems.
In Istanbul, Erdogan, speaking at a rare news conference for foreign media, repeated that the purchase of Russian S-400 systems was a done deal and said the United States should think carefully before imposing sanctions on a North Atlantic Treaty Organisation member.
Erdoğan warned the United States should "think very carefully" before imposing sanctions and would face retaliation if it does, Reuters reported on Thursday.
Turkey has paid 1.25 billion USA dollars so far for F-35s, Erdogan said, adding his country would appeal to an global court for a refund in case of a "false step" by Washington. He plans to discuss the purchase at the G20 this month.
"We will of course say: do you find such sanctions against Turkey acceptable?"
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Initial reports of negotiations between Russian Federation and Turkey on the supply of S-400 appeared in November 2016. "I will ask him to do what is necessary".
"Our relations with Trump are at a level that I would describe as good".
Erdogan said his close relationship with Trump could allow for a favourable outcome to reduce tensions that have poisoned relations between the allies for several months.
In August past year, Turkey's lira crashed to a record low of 7.2 against the dollar when Trump implemented targeted sanctions against two Turkish ministers involved in the imprisonment of an American pastor, Andrew Brunson, on terror and espionage charges.
Washington has repeatedly threatened to impose sanctions unless Ankara backs down from the S-400 purchase.