Donald Trump warned the Federal Reserve to reduce interest rates or he would stop trading with countries that have a commercial deficit with the United States. ^[1] Donald Trump, President of the United States, threatened a commercial embargo on Mexico and Canada on September 4, 2026, during a press briefing in the Oval Office. ^[2] The United States trade deficit with Mexico increased by $7.2 billion to $27.5 billion in July, while the deficit with China was $15.2 billion and with the European Union was $8.9 billion. ^[3] The US Department of Labor reported that the US economy created 162,000 jobs in August, significantly exceeding market expectations. ^[4] President Trump criticized Federal Reserve Chairman Kevin Warsh for resisting political pressure to lower interest rates, calling the current rates an artificial brake on business competitiveness. ^[5] President Trump stated that the United States does not need Mexican products beyond 'hot tamales, tomatoes, and some other things', asserting a trade deficit of $195 billion annually with Mexico. ^[6] The President conditioned the potential trade embargo on the Federal Reserve lowering interest rates, claiming high rates place the United States at an unfair disadvantage. ^[7] The President stated that the United States has much stronger credit than in recent times and demanded interest rate cuts. ^[8] Trump issued this warning following US employment data that exceeded expectations with 162,000 new jobs added. ^[9] Donald Trump described the Mexican economy as having only 'hot tamales, tomatoes, and a couple of things,' asserting that Mexico has nothing the US needs. ^[10] Trump specifically called on Federal Reserve Chairman Kevin Warsh to be a patriot and reduce the cost of credit. ^[11] Trump defended the potential measure as being better than tariffs and asserted he has full legal right to implement it. ^[12]