Photo Credit: Reuters
US President Donald Trump has called for a one-year cap on credit card interest rates at 10% starting Jan. 20, but has offered few details on how the plan would be implemented or enforced.
Trump reiterated a pledge he made during the 2024 election campaign, despite analysts previously saying such a move would require congressional approval. Credit card interest rates in the US currently range from about 21% to 24%.
Lawmakers from both parties have voiced concern about high credit card rates, though no legislation has yet become law. Republicans hold narrow majorities in both the Senate and House.
“Effective January 20, 2026, I am calling for a one-year cap on credit card interest rates of 10%,” Trump wrote on Truth Social, saying Americans would no longer be “ripped off” by card companies.
Democratic Senator Elizabeth Warren said the proposal was meaningless without congressional action and criticised Trump for weakening the Consumer Financial Protection Bureau. The White House did not provide details, while major banks declined to comment.
Banking groups warned that a 10% cap would reduce credit availability and push consumers toward less regulated alternatives.
Several bipartisan bills proposing a 10% cap have been introduced in Congress, while investor Bill Ackman called Trump’s proposal a “mistake.”