Trump tweeted Friday that he authorized raising tariffs on Turkish steel to 50 percent and aluminum to 20 percent as the country's currency falls rapidly against the US dollar.
The Financial Times added to concerns with a report that the European Central Bank was anxious about possible losses at eurozone banks operating in Turkey.
European shares fell on Friday morning as worries over a plunging Turkish lira weighed, with banks most exposed to the country among the biggest losers.
"Aluminum will now be 20 percent and Steel 50 percent". Turkey's economy is headed for extreme levels of inflation as the price of imports jumps, amid a severe contraction of output as the cost of production inputs rises out of the reach of Turkish businesses. But those talks on Thursday showed no signs of breakthrough.
Markets are anxious about a deepening fallout between Washington and Ankara over the detention of U.S. pastor Andrew Brunson on terror charges, as well as other issues.
Relations between the United States and Turkey have not been helped by Turkey jailing an American citizen for an alleged attempted coup in 2016.
Turkish President Recep Tayyip Erdogan has lashed out against a shadowy worldwide "interest rate lobby" which he suggested was "campaigning" to harm Turkey's economy, after the lira fell more than 14 percent overnight.
Officials from Mr Erdogan's office said the two men "expressed pleasure" that relations between Turkey and Russian Federation were progressing "positively" amid joint defence and energy projects.
The euro sank to its lowest against the greenback in more than a year on Friday after a report that the European Central Bank (ECB) was growing concerned about the exposure of banks to a dramatic slide in the Turkish lira.
'However, I say it once again from here.
Some of the lending was financed by Turkish banks who borrowed dollars or euro from other banks in the short-term interbank market and lent them to their customers.
"This will be my people's response to those who have waged an economic war against us".
"Turkey is playing a very unsafe game, they keep lagging behind the curve and the pace of the depreciation and the penalty that the market inflicts on Turkey when it sells off is increasing at a more than linear pace, nearly exponentially".
The country's tax system will be also simplified and the government will aim for a productive Turkey, he stressed. Most of the debt was issued when the Turkish lira traded at less than 2 to the dollar.
The currency has fallen 66 per cent since the start of the year, pushing up the cost of goods for Turkish people and shaking global investors' confidence in the country.
The recent plunge comes after a Turkish delegation in Washington failed to stop the U.S. from imposing sanctions against two senior ministers.
High-level meetings in Washington between US and Turkish officials over Brunson ended this week, apparently without a resolution. He is a self described "enemy of interest rates" and wants banks to lend cheap credit to fuel growth, something experts are anxious could seriously affect the economy.
The central bank raised interest rates to support the lira in an emergency move in May, but it did not tighten at its last meeting.
In modern economies, central banks are meant to be independent of governments to make sure they set policies that are best for the economy, not politicians. But since adopting increased powers, Erdogan appears to have greater control over the bank as well.
Berat Albayrak, the Treasury minister and Mr Erdogan's son-in-law, is due to announce a "new economic model" for Turkey... "While they have dollars, we have our people, law and Allah", the Turkish leader said addressing citizens in the Black Sea city of Rize.