Trump Demands 10% Credit Card Rates by January 20, Threatens Action

President Donald Trump has issued a stark ultimatum to credit card companies, demanding they lower interest rates to a maximum of 10% by January 20, 2026. Failure to comply will be treated as a “violation of the law” and could result in “severe” consequences, marking a dramatic escalation in Trump’s campaign against high-interest rates.

This announcement, made on January 12, 2026, represents a shift from political pressure to explicit legal threats aimed at the banking sector. Trump previously urged a voluntary cap but has now declared that maintaining current rates would constitute illegal activity. “If credit card companies do not lower interest rates to 10% by January 20th, then they are in violation of the law, very severe things,” Trump stated during a press briefing. He emphasized his commitment to protecting the public from what he termed abusive practices by lenders.

The President’s firm stance indicates a potential for regulatory actions or executive measures against major financial institutions, including Visa Inc. (NYSE:V) and Mastercard Inc. (NYSE:MA). The shift in rhetoric signifies a serious approach towards what Trump sees as unlawful pricing models in the credit card industry.

Trump’s ultimatum follows a formal policy announcement on January 10, where he first proposed a one-year cap on credit card interest rates. He cited “affordability” as a pressing issue, criticizing lenders for charging rates that range from 20% to 30%, which he claims have flourished under the current administration. “We will no longer let the American public be ripped off by credit card companies,” he wrote.

The January 20 deadline is not just a policy milestone; it coincides with the first anniversary of Trump’s inauguration, turning it into a significant compliance deadline for the financial industry. This strategic timing underscores the importance of the administration’s economic agenda as it aims to address public concern over high-interest lending practices.

Adding to the discourse, billionaire investor Bill Ackman raised concerns on social media about existing credit card rewards programs. He argued that the current system unfairly burdens low-income consumers, who effectively subsidize benefits enjoyed by wealthier cardholders.

In the financial markets, the announcement has had a notable impact. On January 12, shares of the SPDR S&P 500 ETF Trust (NYSE:SPY) and the Invesco QQQ Trust ETF (NASDAQ:QQQ) saw gains, closing higher at $694.07 and $626.70, respectively, according to data from Benzinga Pro. However, futures for the S&P 500, Nasdaq 100, and Dow Jones indices were trading lower on the following Monday, reflecting uncertainty in investor sentiment.

This development highlights the ongoing tension between regulatory oversight and corporate financial practices, with potential implications for millions of consumers. The outcomes of Trump’s ultimatum could reshape the landscape of credit lending in the United States, impacting both consumers and the financial institutions that serve them.