Trump calls for one-year 10% cap on credit card rates amid cost pressure

The US president said the proposed cap, set to begin on January 20, would stop excessive charges by card issuers, though details on enforcement and industry compliance remain unclear

US President Donald Trump called for a one-year cap on credit card interest rates at 10 per cent, saying the measure would take effect from January 20, as he stepped up efforts to address voter concerns over rising costs ahead of the November midterm elections. January 20 marks the completion of one year of the second Trump administration.

 

In a post on social media, Trump accused credit card companies of charging “20 to 30 per cent, and even more” in interest, claiming such practices were allowed to continue unchecked under the previous administration.

 

“Please be informed that we will no longer let the American public be ‘ripped off’ by credit card companies,” he wrote.

 

 

However, Trump did not specify how the proposed cap would be implemented, nor whether it would require legislation or regulatory action. It also remains unclear whether credit card issuers would voluntarily comply or what steps the administration might take to enforce such a limit.

 

The announcement aligns with Trump’s broader push to demonstrate action on prices and household finances, which have emerged as a key political issue. During the 2024 presidential campaign, Trump had pledged to seek limits on the interest rates charged by credit card companies, tapping into widespread frustration over rising consumer debt.

 

The proposal drew immediate political reactions. Senator Bernie Sanders, an independent from Vermont, said on X that Trump had previously promised to cap credit card interest rates but instead “deregulated big banks charging up to 30 per cent interest”. Sanders has long advocated for stricter controls on consumer lending, alongside Republican Senator Josh Hawley of Missouri.

 

Hawley, however, welcomed Trump’s latest remarks, posting on X: “Fantastic idea. Can’t wait to vote for this.

Fantastic idea. Can’t wait to vote for this https://t.co/VcGy9fDZiU

— Josh Hawley (@HawleyMO) January 10, 2026

Banking industry groups have strongly opposed similar proposals in the past. In a letter sent last year to Sanders and Hawley, several banking trade associations warned that a 10 per cent cap could restrict access to credit for millions of consumers, Bloomberg reported. They argued that borrowers who rely on credit cards for short-term financing might be pushed towards higher-risk alternatives such as pawn shops, auto title lenders or unregulated online lenders.

 

The Bank Policy Institute also cautioned that while a cap may be well intentioned, it could reduce consumers’ access to card credit and lead issuers to scale back benefits, including popular rewards programmes tied to spending.