Turkey's Gulf ally Qatar pledged $15 billion of investment into the Turkish economy on Wednesday, offering further support to a lira rally after the central bank tightened liquidity and curbed selling of the currency.
The escalating feud between the longtime North Atlantic Treaty Organisation allies is playing out against a backdrop of economic tumult in Turkey, which has seen steep drops in the country's currency, the lira.
The Trump administration punished Turkey with economic sanctions and traffic hikes over the detention of an American Christian pastor standing trial on disputed terrorism charges.
The lira was trading on Wednesday at 6.02 to the dollar, a gain in value on the day of 5.5 percent.
In response, Erdogan has called for a boycott of U.S. electrical goods.
But the lira posted gains on forex markets for the first time after days of losses, giving the currency much needed respite.
"Remarkable turnaround", Tim Ash, Bluebay Asset Management senior emerging markets analyst wrote in a client note after the banking watchdog BDDK cut the limit for Turkish banks' forex swap, spot and forward transactions with foreign banks to 25 percent of equity.
"The use of national currencies for mutual trade has for several years been one of the tasks that the presidents of Russian Federation and Turkey had set", Lavrov told a joint news conference with Cavusoglu in Ankara.
The Turkish government doubled its tariffs on imports of American cars and alcoholic beverages to 120 and 140 percent, respectively, CNN reported.
The lira rebounded some 8 per cent on Tuesday, helped by news of a planned conference call on Thursday in which the finance minister will seek to reassure worldwide investors.
Trump ramped up his attack on Turkey by raising steel and aluminium tariffs to 50 percent and 20 percent respectively.
Brunson was moved to house arrest in July 2018. The tariffs that the United States placed on Turkey were out of national security interest.
"Turkey does not favour an economic war, but it can not remain unresponsive when it is attacked", said Ibrahim Kalin, a spokesperson for President Recep Tayyip Erdogan.
Erdoğan and Trump are locked in a dispute about the United States pastor Andrew Brunson, who was arrested nearly two years ago and accused of plotting against the Turkish government.
"We view the policy of sanctions as unlawful and illegitimate, driven mostly by a desire to dominate everywhere and in everything, dictate policies and call shots in worldwide affairs", said Lavrov, predicting "such a policy can't be a basis for normal dialogue and can't last long".