The country's Official Gazette announced on Wednesday the higher tariffs on a series of products including rice, vehicles, alcohol, coal and cosmetics.
Ankara acted amid increased tension between the two North Atlantic Treaty Organisation allies over Turkey's detention of a pastor and other diplomatic issues, which have helped to send the lira tumbling to record lows against the dollar.
Russia's foreign minister, Sergey Lavrov, voiced support for Turkey during a joint news conference with his Turkish counterpart in Ankara on Tuesday, stating both countries plan to switch from dollars to national currencies for their mutual trade.
A decree signed by President Tayyip Erdogan, doubled Turkish tariffs on passenger cars to 120 percent, on alcoholic drinks to 140 percent and on leaf tobacco to 60 percent.
Turkey's Vice President Fuat Oktay said on Twitter that the tariffs were increased "within the framework of the principle of reciprocity in retaliation for the conscious economic attacks by the United States".
The lira's plunge - which had been ongoing for weeks - was turned into a rout on Friday when US President Donald Trump tweeted that Washington was doubling aluminium and steel tariffs for Turkey.
The Turkish central bank has pledged to take "all necessary measures" to stabilize the country's economy to make sure the banks have all the money they need.
The United States was the fourth largest source of imports to Turkey previous year, accounting for $12 billion of imports, according to International Monetary Fund statistics. Erdogan accused the United States of conspiring against Turkey and said that the slide in its currency doesn't make any sense logically.
The Turkish lira has dropped to record lows in recent weeks, having fallen 42 per cent so far this year.
Expects lira recovery to continue.
But on Wednesday the lira rallied 6 percent to below 6.0 against the greenback, boosted by a banking watchdog move on swap transactions and expectations of improved Turkey-EU ties after Turkey released two Greek soldiers detained since March.
Russian Foreign Minister attends a news conference in Ankara, Turkey, Aug. 14, 2018.
The lira had already rebounded about 8 percent on Tuesday on news of a planned conference call on Thursday in which the finance minister will seek to reassure global investors.
Investors are anxious not only about Turkey's souring relations with the U.S., 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.
Analysts say the financial crisis has been a long time coming and reflects Turkey's refusal to raise interest rates to curb double-digit inflation and cool an overheated economy. He clarified that there were no talks now planned between President Erdogan and President Donald Trump.He told the news conference that Turkey will take a positive stance towards trading in national currencies to escape from United States dollar pressure.