Trump threatens to stop trading with countries that have a trade deficit unless the Fed cuts rates
President Trump has threatened to impose trade embargoes on countries with which the U.S. has a trade deficit unless the Federal Reserve lowers interest rates. This rhetoric marks a new escalation in the president's pressure on the central bank and his focus on trade policy.
Why it matters
Threatening trade embargoes as a tool for monetary policy influence represents a significant departure from traditional economic governance and could cause global market instability.
Trump threatens to stop trading with countries that have a trade deficit unless the Fed cuts rates Ben Werschkul · Washington Correspondent Fri, September 4, 2026 at 3:39 PM EDT 3 min read President Trump repeatedly responded to Friday's blowout jobs number by threatening that, in the wake of a new spike in the US trade deficit , he could impose embargoes on unfavored countries.
Trump posted on Truth Social , in what appeared to be a directive to the Federal Reserve, to "LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT."
Trump, who has long voiced a desire for lower interest rates, asserted that an embargo could be "BETTER THAN TARIFFS" and wrote, "the Fed Board, with its great new leader, must get smart."
Also covering this story
4 other newsrooms covered this event. We read each version separately.
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