Trump's New Plan: 10% Cap on Credit Card Interest Rates

Sun Jan 11 2026 08:04:04 GMT+0200 (Eastern European Standard Time)

President Trump revives a campaign promise aiming to cap credit card interest at 10%, potentially saving Americans billions but sparking backlash from the banking industry.

In a significant policy revival, President Donald Trump has proposed a one-year cap on credit card interest rates at 10%, which could potentially save Americans approximately $100 billion annually. The proposal has garnered immediate criticism from the banking sector, which fears the implications of reduced profits and competition from less regulated financial products. Trump's vague suggestion of either executive action or legislative support has left many details unanswered, while some lawmakers, including Senators Bernie Sanders and Josh Hawley, are already in motion to push similar measures.

NEW YORK (PulseWire) — In a revival of a key campaign pledge, President Donald Trump has proposed a cap on credit card interest rates at 10% for one year, a move that could save Americans tens of billions of dollars in high interest. However, the proposal has sparked swift opposition from major players in the credit card industry, who have been significant supporters of Trump.

Trump's announcement on social media raised questions about whether such a cap would be implemented via executive order or through legislative means. Following discussions with Trump, Republican Senator Roger Marshall indicated he plans to support legislative efforts to enact this measure.

According to researchers, capping interest rates at 10% could lead to an estimated saving of $100 billion annually for American consumers. Nevertheless, industry analysts warn this would significantly impact credit card companies' profitability, possibly resulting in reduced rewards and perks for consumers.

Americans currently pay credit card interest rates that range from 19.65% to 21.5%, one of the highest rates recorded since tracking began in the mid-1990s, although recent federal rate reductions have offered some relief.

The banking industry's response to Trump's plan has been extremely critical. The American Bankers Association expressed concern that such a cap would drive consumers toward more costly, less regulated credit options.

Trump's administration has been historically favorable towards the banking sector, with minimal resistance to significant mergers in the credit card market. The Consumer Financial Protection Bureau, tasked with regulating such entities, has been largely inactive under Trump's presidency.

While Trump advocates for measures to cap interest rates on credit cards as a way to curb consumer exploitation, critics point out that his administration has previously pursued deregulation beneficial to the banking sector. In response to Trump's proposal, other lawmakers, including Senators Sanders and Hawley, as well as Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna, have expressed interest in pursuing similar legislation.