A Turkish delegation returned from talks in Washington on Thursday with no apparent solutions to the ongoing crisis over the fate of Brunson, who was recently released from prison but is remanded under house arrest in western Turkey.

Earlier in the day, U.S President Donald Trump announced a doubling of tariffs on imports of steel and aluminum from Turkey.

"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!" Trump said on Twitter.

"Our relations with Turkey are not good at this time!" he added.

Over the current row with the United States, defiant Erdogan said Turks "will respond to those who started an economic war."

Speaking to supporters in the Black Sea province of Rize late Thursday, the Turkish leader brushed off concerns over the currency.

"If they have their dollars, we have our people. We are working hard. Look at what we were 16 years ago and look at us now," Erdogan said.

Immediately after Erdogan's speech, Treasury and Finance Minister Berat Albayrak, also his son-in-law, announced in Istanbul a "new economic model" aiming to curb inflation and sustain economic growth.

The Turkish lira plummeted as much as 14.5 percent on Friday morning to a new record low of 6.46 against the U.S. dollar, before stabilizing around 6, and then turned volatile and tumbled again in the afternoon to 6.54 after Trump's tariff announcement.

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