If the Fed does not give in to his demands, he would stop trading with countries with which the U.S. has trade deficit.

On Friday, U.S. President Donald Trump demanded that the Federal Reserve (Fed) lower interest rates and threatened to halt trade with countries with which the United States has a trade deficit.

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“Great jobs number just announced, breaking all estimates (except mine!) by double and triple – And you haven’t seen anything yet! EMPLOYERS ADDED 162,000 JOB IN AUGUST. Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!,” he posted on Truth Social.

“A STRONG COUNTRY MEANS A LOWER INTEREST RATE – IT’S A BETTER CREDIT…Very simple! We should have the LOWEST RATE of any country in the World, like ‘the old days.’ Without the United States agreeing to allow them their big surpluses, and we could stop that immediately, they would no longer be considered financially ELITE!”

“LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT, which the U.S. Supreme Court, in its ridiculous and very costly Tariff decision, strongly acknowledged ‘the President’ has an absolute right to do. ITS BETTER THAN TARIFFS!.”

“The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change. High interest rates put the USA. at a very unfair disadvantage, and I won’t allow that to happen!,” the U.S. president concluded.

Currently, Kevin Warsh presides over the Federal Reserve Board, a position he obtained thanks to his apparent closeness to Trump. At the end of July, the Fed left interest rates in the 3.5% to 3.75% range. Now Warsh is once again facing pressure from Trump ahead of the meetings on Sept. 15 and 16.

The country Trump is referencing in this video is Switzerland.

He takes issue with the fact that they have low interest rates.

And his arguments show how little he understands about the most BASIC economic disciplines.

Trump says Switzerland “earns $40B a year off the US” via…

— Nic (@puckrin) September 1, 2026

The U.S. Trade Deficit in Goods at the End of 2025

According to the U.S. Bureau of Economic Analysis, the United States had goods trade deficits with 19 countries in 2025. Ranked by the size of the U.S. goods deficit, those countries are:

1. China: US$202.7 billion

2. Mexico: US$197.0 billion

3. Vietnam: US$178.3 billion

4. Taiwan: US$146.6 billion

5. Ireland: US$114.4 billion

6. Germany: US$73.0 billion

7. Thailand: US$71.7 billion

8. Japan: US$64.4 billion

9. India: US$58.4 billion

10. South Korea: US$56.5 billion

11. Canada: US$48.3 billion

12. Switzerland: US$32.5 billion

13. Italy: US$31.4 billion

14. Malaysia: US$30.8 billion

15. Indonesia: US$23.8 billion

16. France: US$17.5 billion

17. Austria: US$12.4 billion

18. South Africa: US$10.2 billion

19. Philippines: US$8.5 billion

The figures above are from Census-basis goods trade and are in nominal dollars. The overall U.S. trade deficit, including services, was US$901.5 billion in 2025. The goods deficit alone was a record US$1.24 trillion, while the U.S. had a US$339.5 billion services surplus.

teleSUR/ JF

Sources: EFE – X- U.S. Bureau of Economic Analysis

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