Trump threatens to halt trade with top partners unless Fed cuts rates

… </script></div></div></div><div class="PageBuilder-containerWidth100 PageBuilder-pageRow"><div class="PageBuilder-col-full PageBuilder-col PageBuilder-article"><div id="RegularArticle-ArticleHeader-2" data-test="articleHeader-0" data-analytics="RegularArticle-articleHeader-2-0"><header class="ArticleHeader-articleHeader" id="main-article-header"><div class="ArticleHeader-headerContentContainer" data-header-content-container="true"><div class="ArticleHeader-wrapperHeroNoImage ArticleHeader-wrapperHero ArticleHeader-wrapper ArticleHeader-wrapperNoImage"><a href="https://www.cnbc.com/politics/" class="ArticleHeader-eyebrow">Politics &amp; Policy</a><div><h1 class="ArticleHeader-headline">Trump doubles down on threat to halt trade with top partners unless Fed cuts rates</h1></div><div class="ArticleHeader-timeHidden"><time data-testid="published-timestamp" dateTime="2026-09-04T13:56:57+0000" itemProp="datePublished">Published Fri, Sep 4 2026<span class="ArticleHeader-datetimeDivider"></span>9:56 AM EDT</time><span class="ArticleHeader-timestampDivider"></span><time data-testid="lastpublished-timestamp" dateTime="2026-09-04T19:48:08+0000">Updated 2 Hours Ago</time></div></div><div class="ArticleHeader-authorAndShareInline"><div class="ArticleHeader-authorContainer ArticleHeader-authorContainerWithWatchLive"><div class="ArticleHeader-author"><div class="Author-author"><div class="Author-authorInfo"><img class="Author-authorPortrait" style="border:0" src="https://image.cnbcfm.com/api/v1/image/107134029-1666702125940-107134029-1665672176847-2022_Headshots-0874.jpg?v=1666702277&amp;w=60&amp;h=60&amp;ffmt=webp" alt="thumbnail"/><div class="Author-authorNameAndSocial"><a href="https://www.cnbc.com/kevin-breuninger/" class="Author-authorName">Kevin Breuninger<span class="Author-authorUnderline"></span></a><a href="https://twitter.com/KevinWilliamB" class="Author-authorTwitter" target="_blank">@KevinWilliamB</a></div></div></div></div></div><span><a href="/live-tv/" class="WatchLive-container">WATCH LIVE</a></span></div></div></header></div></div></div><div class="PageBuilder-containerFluidWidths PageBuilder-pageRow"><div class="PageBuilder-col-9 PageBuilder-col PageBuilder-article"><div class="RenderKeyPoints-keyPoints" id="RegularArticle-KeyPoints-4" data-test="keyPoints-1" data-analytics="RegularArticle-keyPoints-4-1"><div class="RenderKeyPoints-wrapper"><div class="RenderKeyPoints-header">Key Points</div><div class="RenderKeyPoints-list"><div><div class="group"><ul><li>President Donald Trump demanded that the Federal Reserve slash interest rates or else he will cut off trade with countries with which the U.S. maintains trade deficits.</li><li>He doubled down in the Oval Office later Friday, saying, &quot;we should be paying the lowest interest rate in the world.&quot;</li><li>Trump has urged the central bank and its chairman, Kevin Warsh, to &quot;get smart&quot; and cut rates.</li><li> The U.S. has large deficits with dozens of countries, including its top trading partners. </li></ul></div></div></div></div></div><div class="ArticleBody-articleBody" id="RegularArticle-ArticleBody-5" data-module="ArticleBody" data-test="articleBody-2" data-analytics="RegularArticle-articleBody-5-2"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div role="region" aria-labelledby="Placeholder-ArticleBody-Video-108359005"><div role="button" tabindex="0" id="Placeholder-ArticleBody-Video-108359005" class="PlaceHolder-wrapper" data-vilynx-id="7000423844" data-test="VideoPlaceHolder"><div class="InlineVideo-videoEmbed" id="InlineVideo-0" data-test="InlineVideo"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/108359006-17885342361788534234-48175291877-1080pnbcnews.jpg?v=1788534235&amp;w=750&amp;h=422&amp;vtcrop=y" alt="Trump tells Fed to slash rates or he’ll end trade with countries with U.S. surpluses"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-suppressFlyout PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">1:03</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">01:03</span></div><div class="InlineVideo-title">Trump tells Fed to slash rates or he’ll end trade with countries with U.S. surpluses</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/squawk-on-the-street/">Squawk on the Street</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive "></div></div></div><div class="group"><p>President <a href="https://www.cnbc.com/donald-trump/">Donald Trump</a> on Friday doubled down on his threat to cut off trade with countries that have surpluses with the U.S. unless the <a href="https://www.cnbc.com/federal-reserve/">Federal Reserve</a> cuts <a href="https://www.cnbc.com/id/10000836">interest rates</a>.</p><p>&quot;What I&#x27;m saying, very simply, is that we should be paying the lowest interest rate in the world,&quot; Trump said in the Oval Office. </p><div style="height:100%" class="lazyload-placeholder"></div><p>He had been asked about his <a href="https://truthsocial.com/@realDonaldTrump/posts/117213056648777213" target="_blank">Truth Social post</a> earlier in the day declaring, &quot;LOWER THE RATE OR I&#x27;LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.&quot;</p><p>Trump issued that sweeping ultimatum after urging the Fed and its chairman, <a href="https://www.cnbc.com/kevin-warsh/">Kevin Warsh</a>, to &quot;get smart&quot; and cut rates following a much-stronger-than-expected monthly <a href="https://www.cnbc.com/2026/09/04/jobs-report-august-2026.html">jobs report</a>.</p><p>Read Trump&#x27;s full post:</p><div class="ArticleBody-blockquote"><p>Great jobs number just announced, breaking all estimates (except mine!) by double and triple - And you haven&#x27;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! A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT&#x27;S A BETTER CREDIT…Very simple! We should have the LOWEST RATE of any country in the World, like &quot;the old days.&quot; 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&#x27;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 &quot;the President&quot; has an absolute right to do. IT&#x27;S BETTER THAN TARIFFS! The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, and I won&#x27;t allow that to happen! President DONALD J. TRUMP</p></div><p>The Fed declined to comment on Trump&#x27;s post. The White House did not respond to CNBC&#x27;s request for additional information.</p><p>Taken at face value, the threat to end trade with deficit-harboring countries is extreme: The U.S. has large deficits with <a href="https://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf" target="_blank">dozens of countries</a>, including its top trading partners. </p><div style="height:100%" class="lazyload-placeholder"></div><p>Trump has long sought lower interest rates and frequently complains about U.S. deficits with other countries. But many economists say trade deficits themselves are not necessarily good or bad. In fact, deficits can occur when a country has more purchasing power to buy more goods. </p><p>What&#x27;s more, the countries that have trade surpluses with the U.S. will often use the dollars they receive to <a href="https://www.cnbc.com/2026/09/04/treasury-bonds-yield-trump-ai-mortgage-rates-analysis.html">buy U.S. Treasurys</a>, putting that money back into domestic circulation. The U.S. has reported trade deficits in the tens of billions of dollars <a href="https://fred.stlouisfed.org/series/BOPGSTB" target="_blank">each month for decades</a>.</p><p>But in the Oval Office on Friday afternoon, Trump once again portrayed deficits as a zero-sum game in which other countries are taking advantage of the U.S.</p><p>&quot;We have a big deficit with a lot of countries that should never have been allowed to happen,&quot; Trump said.</p></div><div class="group"><div class="RelatedContent-relatedContent" id="RegularArticle-RelatedContent-1"><div class="RelatedContent-container"><div class="RelatedContent-nonCollapsibleContent"><h2 class="RelatedContent-header">Read more CNBC politics and policy coverage</h2><div class="group"><ul><li><a href="https://www.cnbc.com/2026/09/03/freedom-fuel-trump-lawsuit-detroit.html">Trump-touted Freedom Fuel expands to Detroit amid suit over supplier&#x27;s unpaid fuel</a></li><li><a href="https://www.cnbc.com/2026/09/03/vance-fed-interest-rates-trump-bond-yields.html">Vance says Fed should lower interest rates: &#x27;Would be nice to have some help&#x27;</a></li><li><a href="https://www.cnbc.com/2026/09/03/carney-lutnick-trump-trade-canada.html">Canada PM Carney swipes at Trump Commerce Sec. Lutnick over trade, tariff row</a></li></ul></div></div></div></div></div><div class="group"><p>&quot;We have the right to take a so-called financially elite country that&#x27;s paying a much lower interest rate ... Some countries are paying a half a point, and we&#x27;re paying four points, and yet we&#x27;re a much stronger credit than they are,&quot; he said. </p><p>&quot;If we&#x27;re not going to be treated properly, we&#x27;re going to do that,&quot; Trump said. &quot;And all we have to do to cut our trade deficit with the country is not trade with them.&quot;</p><p>He named Canada — which is currently locked in a trade and tariff feud with the U.S. — as an example.</p><p>&quot;If we were playing hardball, all we&#x27;d do is say we&#x27;re going to do no trading with Canada. If we did no trading with Canada, we&#x27;d save 90 billion dollars,&quot; Trump claimed. </p><p>&quot;And so what I&#x27;m saying, very simply, is that we should be paying the lowest interest rate in the world,&quot; he said. &quot;Each point in interest in this country that we pay costs us $650 billion. We should be at 1 percent or a half a percent. We shouldn&#x27;t be at 4 percent.&quot;</p></div><h2 class="ArticleBody-subtitle"><a id="headline0"></a>Trump cranks heat on Warsh</h2><div class="group"><p>Friday&#x27;s comments show Trump resuming his pressure campaign against the Fed, which had eased since the <a href="https://www.cnbc.com/2026/05/22/trump-kevin-warsh-fed-chair-interest-rates.html">appointment of Warsh</a>, his handpicked successor to <a href="https://www.cnbc.com/jay-powell/">Jerome Powell</a>.</p><p>The post and later comments arrived two months before the midterm elections, where Americans&#x27; unhappiness with persistent high inflation has been a dominant theme.</p><p>A week earlier, Warsh suggested in a speech that rate hikes could soon be on the table. The Fed chair said he is <a href="https://www.cnbc.com/2026/08/31/markets-see-warsh-endorsing-a-rate-hike-in-september-not-everyone-is-convinced.html">committed to bringing the inflation rate back</a> down to the central bank&#x27;s 2% target, &quot;Short-term interest rates are the predominant tool to achieve the dual mandate.&quot;</p><p>On Thursday, Vice President <a href="https://www.cnbc.com/jd-vance-us-vice-president/">JD Vance</a> called for lower rates, arguing it would be the &quot;proper and responsible&quot; response to recent U.S. inflation data.</p><p>National Economic Council Director Kevin Hassett, asked about interest rates on CNBC on Friday morning, said, &quot;the Fed will do what it wants to do. We respect their independence, but I think the argument for holding steady would be pretty strong.&quot;</p></div><div role="region" aria-labelledby="Placeholder-ArticleBody-Video-108358579"><div role="button" tabindex="0" id="Placeholder-ArticleBody-Video-108358579" class="PlaceHolder-wrapper" data-vilynx-id="7000423751" data-test="VideoPlaceHolder"><div class="InlineVideo-videoEmbed" id="InlineVideo-0" data-test="InlineVideo"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/108358580-17884615191788461517-48158552977-1080pnbcnews.jpg?v=1788461518&amp;w=750&amp;h=422&amp;vtcrop=y" alt="VP Vance says Fed should lower interest rates"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-suppressFlyout PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">1:36</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">01:36</span></div><div class="InlineVideo-title">VP Vance says Fed should lower interest rates</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/power-lunch/">Power Lunch</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive "></div></div></div><div id="ArticleBody-MobileAdhesion" class="MobileAdhesion-container" data-module="mps-slot"></div><div class="ArticleBody-googlePreferredSourceContainer" data-module="GooglePreferredSource" data-id="RegularArticle-GooglePreferredSource-5"><div class="ArticleBody-googlePreferredSourceBorder"></div><a href="https://www.google.com/preferences/source?q=https://www.cnbc.com/" target="_blank" rel="noopener noreferrer">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</a></div></div></div><div class="SidebarArticle-sidebar PageBuilder-sidebar" data-test="SidebarArticle"><div class="SidebarArticle-sticky" style="top:70px"><div></div><div></div><div style="margin-top:0px"></div><div><div style="height:100%" class="lazyload-placeholder"></div></div></div></div></div><div class="PageBuilder-containerFluidWidths PageBuilder-pageRow"><div class="PageBuilder-col-9 PageBuilder-col PageBuilder-article"></div></div><div class="PageBuilder-containerFluidWidths PageBuilder-pageRow"><div class="PageBuilder-col-12 PageBuilder-col PageBuilder-article"><div style="height:100%" class="lazyload-placeholder"></div></div></div></div></div></div></div><div id="MobileAdhesion-Homepage" class="MobileAdhesion-container" data-module="mps-slot"></div><footer id="GlobalFooter" class="CNBCFooter-footer" data-mini-video-player-dont-scroll-beyond-here="true" data-test="GlobalFooter" data-analytics="RegularArticle-GlobalFooter"><div class="CNBCFooter-wrapper"><div><a href="//www.cnbc.com" class="CNBCFooter-logo" target="_self"><img src="https://static-redesign.cnbcfm.com/dist/d6085c9e81f4d7365c8d.svg" class="CNBCFooter-logoImg CNBCFooter-versantLogo" alt="CNBC logo"/></a></div><ul class="CNBCFooter-social"><li class="CNBCFooter-socialItem"><a href="https://www.facebook.com/cnbc/" class="icon-social_facebook" target="_blank" aria-label="facebook"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.twitter.com/cnbc/" class="icon-social_twitter" target="_blank" aria-label="twitter"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.linkedin.com/company/cnbc/" class="icon-social_linkedin" target="_blank" aria-label="linkedin"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.instagram.com/cnbc/" class="icon-social_instagram" target="_blank" aria-label="instagram"></a></li><li class="CNBCFooter-socialItem"><a href="https://www.youtube.com/user/cnbc/" class="icon-social_youtube" target="_blank" aria-label="youtube"></a></li><li class="CNBCFooter-socialItem"><a href="https://apple.news/T3OtoXcxtRkuHRkM7SpFP_Q" class="icon-social_apple_news" target="_blank" aria-label="apple_news"></a></li><li class="CNBCFooter-socialItem"><a href="/rss-feeds/" class="icon-social_rss" target="_blank" aria-label="rss"></a></li></ul><div class="CNBCFooter-border"></div><ul class="CNBCFooter-list"><li class="CNBCFooter-listItem"><a href="/application/pro/?__source=pro|globalfooter" target="_self">Subscribe to CNBC PRO</a></li><li class="CNBCFooter-listItem"><a href="/investingclub/subscribe?__source=investingclub|globalfooter" target="_self">Subscribe to Investing Club</a></li><li class="CNBCFooter-listItem"><a href="/cnbc-reprints/" target="_self">Licensing &amp; Reprints</a></li><li class="CNBCFooter-listItem"><a href="https://www.cnbccouncils.com/" target="_blank">CNBC Councils</a></li><li class="CNBCFooter-listItem"><a href="/select/" target="_self">Select Personal Finance</a></li><li class="CNBCFooter-listItem"><a href="https://cnbcrsh.qualtrics.com/jfe/form/SV_dgRx5X1nYC0YjNI?Origin=cnbc" target="_blank">Join the CNBC Panel</a></li><li class="CNBCFooter-listItem"><a href="/closed-captioning/" target="_self">Closed Captioning</a></li><li class="CNBCFooter-listItem"><a href="/subscribe/all-access/" target="_self">Digital Products</a></li><li class="CNBCFooter-listItem"><a href="/cnbc-news-releases/" target="_self">News Releases</a></li><li class="CNBCFooter-listItem"><a href="/cnbc-internship-program/" target="_self">Internships</a></li><li class="CNBCFooter-listItem"><a href="/corrections/" target="_self">Corrections</a></li><li class="CNBCFooter-listItem"><a href="/about/" target="_self">About CNBC</a></li><li class="CNBCFooter-listItem"><a href="/site-map/" target="_self">Site Map</a></li><li class="CNBCFooter-listItem"><a href="/podcast/" target="_self">Podcasts</a></li><li class="CNBCFooter-listItem"><a href="/cnbc-careers-and-employment/" target="_self">Careers</a></li><li class="CNBCFooter-listItem"><a href="https://help.cnbc.com/" target="_blank">Help</a></li><li class="CNBCFooter-listItem"><a href="https://help.cnbc.com/contact/" target="_blank">Contact</a></li></ul><ul class="CNBCFooter-section"><li class="CNBCFooter-sectionItem"><h4 class="CNBCFooter-sectionTitle">News Tips</h4><p class="CNBCFooter-sectionText">Got a confidential news tip? We want to hear from you.</p><a href="/news-tips/" class="CNBCFooter-sectionLink" target="_self">Get In Touch</a></li><li class="CNBCFooter-sectionItem"><h4 class="CNBCFooter-sectionTitle"><span class="icon-newsletter CNBCFooter-sectionIcon"></span>CNBC Newsletters</h4><p class="CNBCFooter-sectionText">Sign up for free newsletters and get more CNBC delivered to your inbox</p><a href="/sign-up-for-cnbc-newsletters/" class="CNBCFooter-sectionLink" target="_self">Sign Up Now</a><p class="CNBCFooter-sectionSubText">Get this delivered to your inbox, and more info about our products and services.</p></li><li class="CNBCFooter-sectionItem"><h4 class="CNBCFooter-sectionTitle">Advertise With Us</h4><a href="https://together.nbcuni.com/advertise/?utm_source=cnbc&amp;utm_medium=referral&amp;utm_campaign=property_ad_pages" class="CNBCFooter-sectionLink" target="_blank">Please Contact Us</a></li></ul><ul class="CNBCFooter-legal"><li class="CNBCFooter-legalItem"><a href="https://www.versantprivacy.com/privacy/cookies#accordionheader3" rel="noopener noreferrer" target="_blank">Ad Choices</a></li><li class="CNBCFooter-legalItem"><a href="https://www.versantprivacy.com/privacy" target="_blank">Privacy Policy</a></li><li class="CNBCFooter-legalItem"><img src="https://static-redesign.cnbcfm.com/dist/17269f1b6083fd5f61be.svg" class="CNBCFooter-legalIcon" alt="California Consumer Privacy Act (CCPA) Opt-Out Icon"/><a target="_blank" rel="noopener noreferrer" class="ot-sdk-show-settings ">Your Privacy Choices</a></li><li class="CNBCFooter-legalItem"><a href="http://www.versantprivacy.com/privacy/california-consumer-privacy-act" rel="noopener noreferrer" target="_blank">CA Notice</a></li><li class="CNBCFooter-legalItem"><a href="/terms/" target="_blank">Terms of Service</a></li></ul><p class="CNBCFooter-info">© <!-- -->2026<!-- --> Versant Media, LLC. All Rights Reserved. A Versant Media Company.</p><p class="CNBCFooter-reutersInfo"> …