President Donald Trump has threatened to stop trade with any country that has a trade surplus with the United States, unless the Federal Reserve lowers interest rates. This statement, made on his social media platform Truth Social, links two areas—interest rates and trade policy—that are governed by different parts of the government and have no direct connection under U.S. economic policy. Trump made the post shortly after the Bureau of Labor Statistics released a jobs report showing stronger-than-expected employment growth. In the post, Trump wrote in all capital letters: “LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.” However, it is important to note that the President does not control interest rates, and the Federal Reserve, which sets them, is a separate institution that makes decisions based on economic conditions, not trade balances. The Federal Reserve’s interest rate decisions are aimed at maintaining maximum employment and stable prices, not at managing trade relationships. Trump also argued that the U.S. should have lower interest rates because it is a “much stronger credit” than before, comparing the Fed’s rate to personal loan rates. This analogy, however, applies to how banks set rates for individual borrowers, not to the Fed’s federal funds rate, which is a policy tool used to influence the broader economy. The actual interest rate the government pays to borrow is determined by the market for U.S. Treasury bonds, which is affected by factors like the country’s creditworthiness. However, no major rating agency has upgraded the U.S.’s credit rating recently, and some have actually downgraded it. Trump’s threat to cut off trade with surplus countries could backfire, as it might reduce the demand for U.S. Treasury securities, leading to higher borrowing costs. Countries with trade surpluses often invest their surplus dollars in U.S. government bonds, helping to keep interest rates low. Ending trade with these countries would likely increase borrowing costs, contradicting Trump’s claim that his policies would lead to lower rates. His comments come after a strong jobs report and amid ongoing tensions with the Federal Reserve, where Trump has frequently criticized past leaders and now has a member of his own choosing on the central bank’s board.