Don’t Miss a Post. Subscribe now.

Trump Threatens to Cancel Trade with World Unless the Fed Cuts Rates

Let’s discuss the economic madness of Trump’s threat although it’s a ridiculous, idiotic bluff.

Trump’s Rate Cut Rant

Truth Social: 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! 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. IT’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’t allow that to happen! President DONALD J. TRUMP

Sep 04, 2026, 7:41 AM

Idiotic Bluff

Mainstream media won’t use the words “idiotic bluff” but I will.

If Trump actually stopped trading with countries with which we had a deficit the economy would crash in a day, literally.

Second, the threat is illogical. The trade deficit countries are not the ones that set US interest rate policy. It’s like saying if Susie won’t eat her beets then I will kill Joe’s dog.

Third, the Fed is independent. Trump cannot force the Fed to do anything. And these threats make it more likely that the Fed will not bend to Trump’s wishes.

Former Fed Chair Jerome Powell would have resigned by now were it not for Trump’s lawsuits and threats. Instead, Powell specifically stated he would stay on after his term at Chair ended because of Trump.

That’s one more vote Trump would have if he just shut his mouth.

Countries We Could Not Trade With

  • Mexico
  • Canada
  • Japan
  • Taiwain
  • Germany
  • China
  • South Korea
  • Vietnam
  • Italy
  • France

Mexico and Canada are our two largest trading partners. China is third.

We could not trade with most of the world, and the US economy would collapse instantly.

Ten Countries We Could Trade With

Country / RegionU.S. Trade BalanceKey Drivers & Context
Netherlands+$61 Billion (2025)Serves as the primary European transit hub for American oil, machinery, and agricultural exports.
United Kingdom+$32 Billion (2025)Strongly driven by American aerospace equipment, financial services, and precious metals.
Hong Kong+$30.3 Billion (2026)A major destination for high-value American consumer goods, electronics, and agricultural products.
United Arab Emirates+$24 Billion (2025)Heavily supported by large-scale purchases of American commercial aircraft and defense equipment.
Brazil+$14 Billion (2025)Powered by Brazilian demand for U.S. refined petroleum products, fertilizers, and heavy machinery.
Belgium+$9 Billion (2025)Dominated by American pharmaceutical exports, organic chemicals, and medical instruments.
Australia+$8.1 Billion (2025)High consumer demand for American motor vehicles, high-tech electronic equipment, and optical/medical instruments.
Colombia+$4.35 Billion (2026)Driven significantly by chemical components, refined oil exports, and various agricultural agreements.
Chile+$4.09 Billion (2026)Supported firmly by a robust bilateral Free Trade Agreement focusing on heavy machinery and transport equipment.
Spain+$2.75 Billion (2026)Propelled by substantial Spanish imports of American liquified natural gas (LNG) and aerospace components.

Counterproductive Threat

There is no upside to total stupidity. None.

This may push the Fed in the opposite direction, may cause more Republicans to realize what a jackass Trump is, and it certainly won’t do anything good (in terms of anything Trump wants).

The Sunny Side

The Republican party has to be living in fear now of what idiotic thing Trump might say or do next.

For Democrats looking for the sunny side of the street, that’s a good thing.

Trade Deficit Leaps 24.4 percent

Please note the Trade Deficit Leaps 24.4 percent, Highest on Record Excluding Tariff Distortions

Tariffs did not and will not fix the trade deficit.

Related Posts

September 3, 2026: The Price of Diesel Hit a New Record on Gas Buddy, AAA Tomorrow

Diesel jumped nearly 10 cents today after 5 cents yesterday.

For those keeping score, the AAA price of diesel did hit a new record high of $5.8500 today, eclipsing the $5.8159 price on July 19, 2022 under Biden.

Congratulations (of sorts) to Trump.

September 4, 2026: Unexpectedly Strong Jobs Report, Payrolls Rise by 162,000 in August

Jobs Rebounded in August, Unemployment Rate Steady at 4.1 Percent

Addendum – Funniest Comment of the Day

Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

This post originated on MishTalk.Com

Thanks for Tuning In!

Mish

Subscribe
Notify of
guest

13 Comments
Newest
Oldest Most Voted
whirlaway
whirlaway
29 seconds ago

The funny thing is: JD Vance is going around claiming Abdul El Sayed is a “crazy person” – while he himself is still Donald Trump’s VP!

It’s one of those “if you don’t laugh, you will have to cry” moments!

Bill
Bill
4 minutes ago

The strong jobs report combined with the CPI/PCE data indicates a hike is warranted not a cut. It is nonsense to think the report would warrant a reaction such as this but I’ve commented countless times that all Presidents want the tailwind of cuts. In his last term they hiked UNTIL Covid. This term we’ve seen hikes again. If we see rate cuts it will be for terrible reasons. He should be happy. But that interest is really chewing into the fiscal picture. Someone was always gonna be standing in the Oval Office when the fiscal noose tightened due to past monetary and fiscal irresponsibility. He is that guy. Saying stupid things just makes one look stupid.

Triple B
Triple B
13 minutes ago

POTUS might want to try governing instead of treating the country like his personal drama channel.

Brian
Brian
18 minutes ago

Given that this idea is currently on Trump’s demented mind though, I can’t help but think that when Canada’s counter-tariffs on US goods imports come into effect at 12:01 AM next Tuesday morning, Trump will announce that he will *completely* block at least one category of goods imports from Canada.

I expect this because the Trump admin has already signaled that it will retaliate against Canada’s retaliation. Because you know, only the US is allowed to retaliate against its trade partners, and those countries are not allowed to reciprocate. (It’s a new rule, a first in the history of trade wars!)

Watch for it!

Arrow
Arrow
22 minutes ago

As I commented in the Jobs Report article,
Puerile & Petulant…how log will UncleSam let this go on?

He is a functionary of UncleSam…just a less polished front-man than usual.

Tony Frank
Tony Frank
24 minutes ago

Ignore taco as always as he will chicken out. After all, the deranged clown is simply a bully among boot lickers.

Indentured-Peasant
Indentured-Peasant
25 minutes ago

people are going to start saying ‘never go full Trump’ haha.

JamesN
JamesN
30 minutes ago

May as well just say “Make Inflation Great Again”

Augustine
Augustine
33 minutes ago

86-47/25!

Brutus Admirer
Brutus Admirer
38 minutes ago

Trump says to the Fed “Debase the money even more…or I will outlaw purchasing rare earths from China, which by itself will tank the economy…”

A president this self-destructive and suicidal is too dangerous not to be impeached immediately.

El Trumpedo
El Trumpedo
26 minutes ago
Reply to  Brutus Admirer

Impeached? Hell no… he should be launched into the sun.

RevMark
RevMark
8 minutes ago
Reply to  El Trumpedo

I thought about offering him to the Iranians as a hostage

Wonderer
Wonderer
43 minutes ago

”No trade for you”. The trade Nazi

Decorate Your Walls with Mish Fine Art Images

Click each image to view details or purchase in the store.

Stay Informed

Subscribe to MishTalk

You will receive all messages from this feed and they will be delivered by email.