President Donald Trump's economic strategy is facing fresh scrutiny as his administration continues using tariffs and sanctions to pressure trading partners and geopolitical rivals.

New tariffs of up to 12.5% on imports from 60 countries are now facing legal challenges, with multiple US states arguing that the administration exceeded its authority. Economists also suggest that American businesses and consumers—not foreign exporters—are paying much of the cost through higher prices.

At the same time, US sanctions on Russia have pushed Moscow to expand alternative payment systems, shadow shipping networks, and trade partnerships with countries such as China and India.

Trump's Tariffs & Sanctions Under Fire | Are US Economic Pressure Tactics Failing?

<p>United States President Donald Trump has called for a one-year cap of 10 per cent, vowing that his administration will no longer let the American public be "ripped off" by credit card companies that charge 20 to 30 per cent interest rates.</p><h2><strong>Trump's 'anniversary gift' to the American public?</strong></h2><p>In a post on Truth Social, Trump said that the cap would take effect on January 20, 2026, exactly one year after he returned to office. This effectively makes the credit card interest cap an "anniversary gift" to the American public. The announcement happens to be the fulfilment of a key campaign promise made during the 2024 presidential race, one that critics had repeatedly accused him of shelving during much of his first term.</p><p><strong>Also read | </strong><a href="https://www.wionews.com/business-economy/dangerous-waters-how-trump-s-10-credit-card-interest-rate-cap-can-turn-into-a-gift-for-loan-sharks-1768033556399"><strong>Dangerous waters: Trump's 10% credit card interest rate cap and ‘loan sharks’</strong></a></p><p>"Effective January 20, 2026, I, as President of the United States, am calling for a one-year cap on Credit Card Interest Rates of 10%," Trump wrote. He said the date would coincide with what he called the "historic and very successful" first year of his administration.</p><p>The president also took aim at his predecessor, Joe Biden, blaming him for allowing high interest rates. The high interest rates "festered unimpeded during the Sleepy Joe Biden Administration," he claimed.</p>

<h2><strong>Can Trump implement this unilaterally without the US Congress?</strong></h2><p>Trump did not outline how the cap would be implemented or whether it would require congressional approval. Still, he argued that the intent was clear. "Please be informed that we will no longer let the American Public be 'ripped off' by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more", he said, casting the move as part of a broader affordability push.</p><p>However, Trump cannot implement the cap unilaterally. To do it formally would require congressional legislation. His announcement, for now, is more of a proposal or call for action, and not an immediate executive order.</p><p><strong>Also read | </strong><a href="https://www.wionews.com/trending/trump-beware-denmark-soldiers-will-shoot-first-ask-questions-later-if-us-tries-to-invade-greenland-1767862463458"><strong>Trump Beware! Denmark soldiers will 'shoot first, ask questions later' if US tries to invade Greenland</strong></a></p><h2><strong>Reactions to Trump's credit cap announcement</strong></h2><p>On X, the official White House account reposted the Truth Social message with the caption "HUGE: President Donald J. Trump announces a one-year cap on Credit Card Interest Rates of 10% effective January 20, 2026."</p><p>&nbsp;</p>

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">HUGE: President Donald J. Trump announces a one year cap on Credit Card Interest Rates of 10% effective January 20, 2026. 💸 <a href="https://t.co/WKJ4Fk4SnC">pic.twitter.com/WKJ4Fk4SnC</a></p>&mdash; The White House (@WhiteHouse) <a href="https://twitter.com/WhiteHouse/status/2009799629442035968?ref_src=twsrc%5Etfw">January 10, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<p>The announcement triggered swift reactions with many celebrating the interest rate cap, however other raised concern about the POTUS attempt to control market forces. "what this will do is force the credit card companies to drop all the people who have bad credit and only provide credit to those who have good and excellent credit," pointed out Brian Krassenstein, an anti-Trump influencer and podcaster.<br>Similarly, not all of Trump’s allies were impressed. Billionaire investor Bill Ackman who had endorsed Trump during the 2024 presidential elections, publicly criticised the proposal, warning it was a "mistake". He argued that limiting rates would push lenders to cancel cards for higher-risk consumers, potentially driving them toward "loan sharks".</p><p><strong>Also read | </strong><a href="https://www.wionews.com/world/trump-says-venezuela-open-for-business-but-big-oil-isn-t-convinced-uninvestable-says-exxon-1768015196739"><strong>Trump makes bold Venezuela oil play, but Exxon says 'uninvestable' | Deets here</strong></a><br>&nbsp;</p>

Donald Trump has called for a cap of 10 per cent on credit card interest, pitching it as an anniversary gift to Americans fed up with high rates. All you need to know.

United States President Donald Trump has called for a one-year cap of 10 per cent, vowing that his administration will no longer let the American public be "ripped off" by credit card companies that charge 20 to 30 per cent interest rates. Trump's 'anniversary gift' to the American public? In a post on Truth Social, Trump said that the cap would take effect on January 20, 2026, exactly one year after he returned to office. This effectively makes the credit card interest cap an "anniversary gift" to the American public. The announcement happens to be the fulfilment of a key campaign promise made during the 2024 presidential race, one that critics had repeatedly accused him of shelving during much of his first term. Also read | Dangerous waters: Trump's 10% credit card interest rate cap and ‘loan sharks’ "Effective January 20, 2026, I, as President of the United States, am calling for a one-year cap on Credit Card Interest Rates of 10%," Trump wrote. He said the date would coincide with what he called the "historic and very successful" first year of his administration. The president also took aim at his predecessor, Joe Biden, blaming him for allowing high interest rates. The high interest rates "festered unimpeded during the Sleepy Joe Biden Administration," he claimed.

<p>Donald Trump has called for a cap of 10 per cent on credit card interest, pitching it as an anniversary gift to Americans fed up with high rates. All you need to know.</p>

Trump says won't let Americans be 'ripped off,' offers relief from 20-30% credit card interest rates

<p>US retailers are warning of fewer fake Christmas trees and higher prices this holiday season, as tariffs on Chinese imports weigh on supply chains and consumer demand. According to a Reuters report, a last-minute reprieve from Washington and Beijing on August 11, granting a 90-day delay in tariff hikes has done little to ease concerns. Most retailers had already placed their seasonal orders months in advance, leaving limited room to restock shelves with fresh inventory.</p><h2><strong>Retailers cut back orders</strong></h2><p>Chris Butler, CEO of National Tree Company, which supplies Walmart, Home Depot, Lowe’s and Amazon, said this year’s market will see “lower supply.” His company sources around half of its trees from China, and the rest from Vietnam, Cambodia, and Thailand.</p><p>&nbsp;</p><p>Butler confirmed that prices on popular models, including Carolina pine, Nordic spruce, and Dunhill fir will rise between 10 to 20 per cent. Retailers, he added, are pushing companies like his to ship directly to customers, cutting back on bulk inventory purchases to reduce financial risk.</p><h2><strong>China’s dominance in Christmas décor</strong></h2><p>China remains the global hub for festive goods, supplying 87 per cent of US Christmas decoration imports last year, worth roughly $4 billion, according to United States International Trade Commission data cited by Reuters.</p><p>&nbsp;</p><p>But after US President Donald Trump first raised tariffs to 145 per cent in April before scaling them back to 30 per cent in May, retailers have been hesitant to commit to large orders at volatile price points.</p><p>Mac Harman, CEO of California-based Balsam Hill, expects 15 per cent fewer trees in the market this season. “Even with the extended 90 days, it’s too late for any of us to add orders,” he told Reuters.</p><p>&nbsp;</p><p>Still, the pause has helped his company save around $2.5 million, underscoring how unpredictable tariff policy has become for businesses.</p><h2><strong>Holiday budgets under strain</strong></h2><p>The cutback in artificial trees highlights what may be a muted shopping season overall. American households are already squeezed by higher prices on essentials such as diapers, soap, and clothing.</p><p>Levi Strauss recently announced it would scale back its holiday offerings, while toy makers are also feeling the pinch. Isaac Larian, CEO of MGA Entertainment maker of Bratz dolls said that even a 30 per cent tariff on toys is “still too much,” forcing the company to raise prices.</p><h2><strong>Limited gains from the delay</strong></h2><p>Experts caution that the 90-day delay will only help goods shipped by air. Chris Rogers of S&amp;P Global Market Intelligence noted that companies like Apple set for new product launches stand to benefit, but most retailers have already locked in their festive inventories.</p><p>&nbsp;</p><p>Some brands attempted to rush extra orders after the moratorium was announced, but shifting supply chains is proving complex. Dave Tu, president of DCL Logistics, which handles distribution for brands like GoPro, said that many firms that diversified away from China are now facing bottlenecks and delays as new manufacturers struggle to scale up.</p><h2><strong>A muted Christmas ahead</strong></h2><p>Industry groups believe that, for most retailers, this season’s inventory is already fixed. Matt Priest, CEO of the Footwear Distributors and Retailers of America, summed it up bluntly: “Holiday inventory is what it is.”</p><p>&nbsp;</p><p>Despite the reprieve, American shoppers can expect fewer fake firs and higher price tags, making this festive season a test of both retailers’ resilience and household budgets.</p><p>&nbsp;</p><p><i>(With inputs from the agencies)&nbsp;</i></p>

With households already squeezed by higher costs on essentials and toys also set to get pricier, this year’s holiday season may see muted shopping and tighter budgets.

US retailers are warning of fewer fake Christmas trees and higher prices this holiday season, as tariffs on Chinese imports weigh on supply chains and consumer demand. According to a Reuters report, a last-minute reprieve from Washington and Beijing on August 11, granting a 90-day delay in tariff hikes has done little to ease concerns. Most retailers had already placed their seasonal orders months in advance, leaving limited room to restock shelves with fresh inventory. Retailers cut back orders Chris Butler, CEO of National Tree Company, which supplies Walmart, Home Depot, Lowe’s and Amazon, said this year’s market will see “lower supply.” His company sources around half of its trees from China, and the rest from Vietnam, Cambodia, and Thailand. Butler confirmed that prices on popular models, including Carolina pine, Nordic spruce, and Dunhill fir will rise between 10 to 20 per cent. Retailers, he added, are pushing companies like his to ship directly to customers, cutting back on bulk inventory purchases to reduce financial risk. China’s dominance in Christmas décor China remains the global hub for festive goods, supplying 87 per cent of US Christmas decoration imports last year, worth roughly $4 billion, according to United States International Trade Commission data cited by Reuters. But after US President Donald Trump first raised tariffs to 145 per cent in April before scaling them back to 30 per cent in May, retailers have been hesitant to commit to large orders at volatile price points. Mac Harman, CEO of California-based Balsam Hill, expects 15 per cent fewer trees in the market this season. “Even with the extended 90 days, it’s too late for any of us to add orders,” he told Reuters. Still, the pause has helped his company save around $2.5 million, underscoring how unpredictable tariff policy has become for businesses. Holiday budgets under strain The cutback in artificial trees highlights what may be a muted shopping season overall. American households are already squeezed by higher prices on essentials such as diapers, soap, and clothing. Levi Strauss recently announced it would scale back its holiday offerings, while toy makers are also feeling the pinch. Isaac Larian, CEO of MGA Entertainment maker of Bratz dolls said that even a 30 per cent tariff on toys is “still too much,” forcing the company to raise prices. Limited gains from the delay Experts caution that the 90-day delay will only help goods shipped by air. Chris Rogers of S&P Global Market Intelligence noted that companies like Apple set for new product launches stand to benefit, but most retailers have already locked in their festive inventories. Some brands attempted to rush extra orders after the moratorium was announced, but shifting supply chains is proving complex. Dave Tu, president of DCL Logistics, which handles distribution for brands like GoPro, said that many firms that diversified away from China are now facing bottlenecks and delays as new manufacturers struggle to scale up. A muted Christmas ahead Industry groups believe that, for most retailers, this season’s inventory is already fixed. Matt Priest, CEO of the Footwear Distributors and Retailers of America, summed it up bluntly: “Holiday inventory is what it is.” Despite the reprieve, American shoppers can expect fewer fake firs and higher price tags, making this festive season a test of both retailers’ resilience and household budgets. (With inputs from the agencies)

<p>US retailers are bracing for fewer artificial Christmas trees and steeper prices this holiday season, despite Washington and Beijing granting a 90-day delay in tariff hikes, Reuters reported.&nbsp;</p>

China tariff delay fails to save US Christmas shopping season

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Trump's Tariffs & Sanctions Under Fire | Are US Economic Pressure Tactics Failing?

Won't be 'ripped off': Trump offers relief from 30% credit card interest rates

China tariff delay fails to save US Christmas shopping season