Trump pressures Fed, embargoes and expands price-lowering measures
President Donald Trump threatened to cut off trade with countries with deficits if the Fed does not cut rates. At the same time, his administration expanded drug pricing agreements and also called on oil refiners to increase fuel output. The EPA approved winter gasoline ahead of schedule.
Sources
· 8Трамп угрожает торговым эмбарго, если ФРС не снизит ставку
1Трамп расширил соглашения о ценах на лекарства с 9 фармкомпаниями, доведя их число до 26
2Трамп призвал нефтепереработчиков США нарастить выпуск топлива на встрече в Белом доме
3EPA досрочно отменила летний бензиновый стандарт с 1 сентября
4Трамп заключил соглашения о ценах на лекарства для Medicaid с девятью фармкомпаниями
5Trump pushes US Federal Reserve for rate cuts, criticizes Powell
6Watch Trump Expects a ‘Big Cut’ From Federal Reserve This Week - Bloomberg
7Trump calls Federal Reserve 'my biggest threat'
8Key points
- Trump threatened to halt trade with countries with which the US has a trade deficit if the Fed does not cut rates, and cited the emergency economic powers act.
- The US trade deficit in goods and services reached $88.6 billion in July, the highest since March 2025, and was 24.4% above the June level.
- The administration signed drug pricing agreements with nine companies, bringing the total to 26; the deals include investments of at least $19.6 billion in US manufacturing.
- The EPA early allowed the sale of winter E10 gasoline starting September 1, and Trump called for increasing fuel output at a meeting with oil refiners.
- The average US gasoline price was $4.10 per gallon compared with $3.13 a year earlier, while diesel was almost $6, according to AAA.
What happened
The Trump administration also signed new drug pricing agreements with nine pharmaceutical companies, bringing the total number of such agreements to 26. The deals require discounts on outpatient drugs in all state Medicaid programs and include commitments to invest at least $19.6 billion in US manufacturing. The agreements cover treatments for chronic and rare diseases, including hemophilia, liver disease, skin diseases, and some types of cancer.
Meanwhile, at a closed White House meeting on Tuesday, Trump called on American oil refiners to increase production of gasoline and diesel fuel. Regulatory changes, faster permitting, and additional investments to lower fuel prices were discussed. The meeting came amid record seasonal prices: gasoline averaged more than $4 per gallon and diesel almost $6, according to AAA. The U.S. Environmental Protection Agency allowed, effective September 1, the sale of winter gasoline with 10% ethanol — about two weeks earlier than usual — to increase fuel supply and lower prices. The average price of regular gasoline in the US on Thursday was $4.10 per gallon compared with $3.13 a year earlier; the decision affected smog-prone areas, including Texas, Arizona, and California.
Why it matters
Trump's pressure on the Fed is not limited to the current threat: in May 2025 he called on the regulator to cut rates "sooner rather than later," and in September 2025 he expected a "big" cut. Trump previously called the Federal Reserve his "biggest threat."
What changed
Earlier, on September 1, the Trump administration's agreements with nine biotechnology and pharmaceutical companies, including UCB SA, BridgeBio Pharma and Sun Pharmaceutical Industries, were reported. At the time, Trump said that each drug "will be sold at the lowest prices available anywhere in the world." The total number of companies that have signed such agreements has now reached 26.
Related original articles
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- 1d agoТрамп расширил соглашения о ценах на лекарства с 9 фармкомпаниями, доведя их число до 26Yahoo Finance
- 2d agoТрамп призвал нефтепереработчиков США нарастить выпуск топлива на встрече в Белом домеYahoo Finance
- Aug 20EPA досрочно отменила летний бензиновый стандарт с 1 сентябряYahoo Finance