Speaking privately to journalists late Saturday, President Erdogan broke his silence on the crisis, saying the US can't use sanctions to make Turkey back down.
Turkey blames the 2016 coup attempt on Fetullah Gulen, a Turkish cleric now living in the United States, and has long suspected that Washington had a hand in it-allegations the United States fiercely denies.
"At the president's direction, the Department of the Treasury is sanctioning Turkey's minister of justice and minister of interior, both of whom played leading roles in the arrest and detention of Pastor Brunson".
As a result of the sanctions, US persons can't engage in transactions with either man and any property of theirs within USA jurisdiction is blocked.
The sanctions are being prepared under the Global Magnitsky Act of 2016, which allows the USA government to target individuals, companies or other entities involved in corruption or human-rights abuses.
He said Erdogan overestimated the significance of his personal relationship with Trump, given growing impatience with Turkey in Congress, the State Department, and Pentagon.
But the move stoked tensions rather than defusing the crisis, with United States media reports accusing Turkey of reneging on a deal to free him, which Ankara has denied.
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"They can not make Turkey back down with sanctions", Erdogan said to Turkish media.
Mr. Brunson had been jailed for about 18 months on terrorism-related charges.
"There is no doubt that this will greatly damage constructive efforts working to solve the issues between the two countries", the foreign ministry said in a statement.
Brunson's supporters maintain that the charges against him were fabricated.
"President Trump concluded that these sanctions are the appropriate action", Pompeo said in a statement.
President Donald Trump warned last week that he might impose sanctions against Turkey, a key North Atlantic Treaty Organisation ally, for its treatment of Andrew Craig Brunson in a case that has strained U.S.
"The aggressive attitude of the US serves no goal", it said in a statement, adding that Turkey would reciprocate "without delay".
State Department spokeswoman Heather Nauert told reporters that the administration will continue its talks with Turkish officials even as the sanctions take effect. He's a man of profound Christian faith, who has ministered in Turkey for more than 20 years.