Investors are anxious not only about Turkey's souring relations with the USA, a longtime North Atlantic Treaty Organisation ally, but also Turkish President Recep Tayyip Erdogan's economic policies and the country's high debt accumulated in foreign currencies. "We are going to boycott U.S. electronics", Erdogan said at celebrations of the 17th anniversary of his Justice and Development Party. "If [the US] has the iPhone, there's Samsung on the other side", Erdogan was reported as saying.
The dispute between the USA and Turkey has started an economic crisis in Turkey that has pushed its currency to historic lows.
On Tuesday the White House said President Trump was frustrated that Turkey had not released Andrew Brunson, the evangelical pastor held on terrorism charges that Washington believes are fabricated.
Brunson, 50, is being tried on espionage and terror-related charges, which he and the USA government vehemently deny.
On Friday, U.S. President Trump said the he made a decision to impose a 50 percent ad valorem tariff on steel articles and 20 percent on aluminum imported from Turkey, specifically targeting the slide in the Turkish lira and the economy as he wrote on his Twitter account.
"We as Turkish Airlines are taking our place alongside our state and people", senior vice president for media relations Yahya Ustun tweeted. "Necessary instructions on the issue have been issued to our agencies", Yahya Ustun, spokesman for the country's flag-carrier, wrote on Twitter.
In his speech yesterday, Erdogan said these moves were part of a larger effort to disable the country.
"The progress that we want to be made is to have Pastor Brunson return home, and I'll leave it at that", US State Department spokeswoman Heather Nauert said on August 9.
Erdogan admitted the Turkish economy had problems - including a widening current account deficit and inflation of nearly 16 percent but added: "Thanks to God, our economy is functioning like clockwork".
Behind the scenes, however, diplomatic dialogue appears to have resumed.
On Monday, the Turkish currency hit a record low of 7.24 against the United States dollar in Asia Pacific trading.
Turkish lira plunged on concerns over the deepening rift between Washington and Ankara, hitting a record low of 7.24 against USA dollar and weakening some 45 percent so far this year.
After the USA imposed sanctions on two Turkish ministers and amid growing domestic pressure from businesses and banks to contain a currency crisis, Erdogan said he wouldn't back down in the face of the economic attack against his country. "The administration is going to stay extremely firm on this", the official said.
Peter O'Flanagan, the head of trading at the foreign exchange consultancy Clear Treasury, said: "Restrictions from the Turkish central bank limiting banks' use of swap lines has had the desired effect on the lira".