The Turkish court in Izmir upheld a lower-court decision that rejected lifting Brunson's house arrest, according to the state-run Anadolu agency. Turkey retaliated with some $533 million of tariffs on some USA imports - including cars, tobacco and alcoholic drinks - and said it would boycott US electronic goods, singling out Iphones.
Anti-American rhetoric grew in Turkey in recent days as the Turkish Lira plummeted against the USA dollar and Trump doubled tariffs on Turkish steel and aluminum imports as well as imposed sanctions on the Turkish Interior and Justice Ministers in response to the continued detention of American Pastor Andrew Brunson.
"We have put sanctions on several of their cabinet members", Mnuchin told President Donald Trump in a cabinet meeting attended by the press. In response, Erdogan has called for a boycott of USA electrical goods while Ankara has sharply hiked tariffs on some United States goods. On Friday, a court rejected another appeal to free him. Many financial experts say Turkey should raise interest rates to reduce inflation and attract investment, but Erdogan has so far opposed a move he says would curb growth.
Investors are concerned that Turkey has amassed high levels of foreign debt to fuel growth in recent years.
The investment package was announced after Qatar's Emir Tamim bin Hamad Al-Thani met President Tayyip Erdogan in the capital, as Turkey grapples with a collapsing lira and a worsening commercial and political standoff with North Atlantic Treaty Organisation ally the United States. He did not elaborate on what measures the USA is willing to take if Turkey continues to play hardball over Brunson.
"They can't take our people", the president said, calling Brunson a "wonderful Christian pastor". The feud over Brunson, who was detained in October 2016, has added to the jitters over an economy that grew quickly, with the help of heavy borrowing, in past years.
U.S. sanctions and tariffs have contributed to a tumble in the Turkish lira, which dropped in value to 5.86 to the dollar on Friday following Mnuchin's warning. He faces 35 years in prison on espionage and terror-related charges.
Turkey, he said, has no plans to seek help from the International Monetary Fund or impose capital controls to stop money flowing overseas in response to the recent collapse of its lira currency.