MarketPR
The threat of severed trade with surplus nations now has an explicit monetary condition attached.
President Donald Trump has said he would cut off trade with countries that run trade surpluses with the United States if the Federal Reserve does not cut interest rates.
He also said he told board member Kevin Warsh to vote for a rate hike alongside the rest of the Fed board. Then he dismissed it: "It's not going to matter." That pairing matters for trade-exposed supply chains.
Countries running surpluses with the United States ship more goods into the country than they receive in return, and a cutoff of that trade would tighten the inbound flow of goods across industries that depend on those channels, compressing order books and pushing buyers toward alternative sources.
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