Trump threatens halting trade with some countries unless Fed cuts rates

US President Donald Trump looks on before signing executive orders releated to beef processing and cattle ranchers, in the Oval Office of the White House in Washington, DC, on September 4, 2026. (Photo: Xinhua)

U.S. President Donald Trump on Friday threatened to completely stop trade with countries running trade surpluses with the United States unless the Federal Reserve (Fed) cuts interest rates.

"LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT," Trump wrote in a social media post. "A STRONG COUNTRY MEANS A LOWER INTEREST RATE -- IT'S A BETTER CREDIT."

Trump made the threat in response to a stronger-than-expected monthly jobs report. The U.S. Labor Department reported Friday that the U.S. economy added 162,000 jobs in August, much higher than the expected 53,000 jobs added, and the unemployment rate remained unchanged at 4.1 percent.

"High interest rates put the U.S.A. at a very unfair disadvantage, and I won't allow that to happen!" Trump said.

Trump's remarks may intensify the tensions between the administration and the central bank and threaten the latter's independence, as several voting Fed members, including Fed Chair Kevin Warsh, have signaled openness to a rate hike if inflation remains high, U.S. media said on Friday.