Trump Today: Trump Today: President calls on China to patrol Strait of Hormuz, to sign executive order on health pricing

Ahead of a health pricing event, President Donald Trump on Monday called on China to shoulder the responsibility for protecting a key waterway. Read More...

A picture taken during a guided tour by the US Navy on June 19, 2019 shows a US Navy patrol boat that took journalists on board at a UAE Naval facility near the port of the Gulf emirate of Fujairah to show them an oil tanker that were attacked last week in the Gulf of Oman.

President Donald Trump on Monday called on China to shoulder the responsibility for protecting a key waterway and is expected to sign an executive order on pricing in the healthcare sector later in the day.

CALL FOR GREATER CHINA, JAPAN PRESENCE

Incorrectly spelling “Strait” as “Straight,’ Trump over two tweets said China and Japan should either pay or actually patrol a key Middle Eastern waterway, the Strait of Hormuz, that has been the source of recent tension between the U.S. and Iran.

MarketWatch columnist Paul Brandus explored this subject in a column, arguing that China’s lack of involvement in the Middle East also allows the country to pursue its priorities in the Western Pacific and South China seas.

The U.S. meanwhile is planning to impose major new sanctions on Iran.

Oil futures CL.1, +0.77% rose on Monday, as did U.S. stock futures YM00, +0.21% ahead of Trump’s planned meeting with China President Xi Jinping later this week.

Trump also made another round of Federal Reserve criticism, saying over Twitter that the central bank “doesn’t know what it is doing.” Last week the Federal Reserve held interest rates unchanged though it positioned itself to cut rates as early as July.

HEALTH PRICING

In the afternoon, Trump is scheduled to sign an executive order on improving price and quality transparency in healthcare. The measure could force hospitals, insurers and drugmakers to disclosed negotiated or discounted prices.

The order, and related rulemaking, is expected to prompt a flood of industry lawsuits. “The impact of today’s order will likely not be felt soon because the rulemaking process will be time consuming and legal challenges are expected. It is our understanding that if rules are finalized and upheld in court, the healthcare industry could face serious disruption,” said analysts at Height Securities.