Trump says US could stop trading with Mexico and other countries over trade deficits
Key Takeaways
- •Trump said the U.S. could reduce its trade deficits by refusing to trade with Mexico, Canada and the European Union.
- •He said the United States has a good relationship with Mexican President Claudia Sheinbaum despite criticizing trade with Mexico.
- •The remarks were linked to Trump’s ongoing pressure on the Federal Reserve to lower interest rates.
- •The U.S. recorded a $197 billion goods deficit with Mexico in 2025, while Mexico supplies vehicles, machinery, electronics and agricultural products to the American market.
- •No decision to end trade with the three markets was announced, so the statements currently represent a possible policy direction rather than an implemented measure.
President Donald Trump said the United States could stop trading with Mexico and other countries where it runs trade deficits, escalating his rhetoric toward one of America’s largest trading partners.
Speaking at an Oval Office news conference on Sept. 4, Trump said the U.S. could prosper by reducing its dependence on foreign trade. “We could do tremendous good for ourselves by just not trading with countries,” he said.
Trump singled out Mexico, a critical link in North American automotive, manufacturing and agricultural supply chains. “We lose with Mexico $195 billion a year,” Trump said in a video posted by C-SPAN. “If I don’t trade with Mexico, they have nothing that we have to have. I mean, hot tamales? Tomatoes? A couple of things? Basically, they have nothing we need. We have oil. We have everything.”
Trump also said he has a good relationship with Mexican President Claudia Sheinbaum. “I don’t want to do that, because we get along very well with the president,” he said. “We like the president, respect her a lot.”
The president made similar comments about Canada and the European Union, saying the U.S. could eliminate trade deficits simply by refusing to trade with those markets. Trump said the U.S. “loses” roughly $200 billion annually with the European Union and claimed that ending trade with Canada would save the country between $60 billion and $90 billion a year.
The remarks came as Trump continued pressuring the Federal Reserve to lower interest rates. Reuters reported Friday that Trump threatened to stop trading with some countries where the U.S. runs deficits if the Fed does not cut rates.
The comments described a possible policy direction rather than announcing an end to trade with Mexico, Canada or the European Union. Their significance therefore depends on whether they are followed by specific trade measures.
The U.S. ran a $197 billion goods deficit with Mexico in 2025. Mexico also supplies U.S. businesses and consumers with vehicles, machinery, electronics and agricultural goods. Exports of Mexican-made vehicles to the U.S. rose in August, according to FreightWaves.
FreightWaves originally reported the remarks.
