Donald Trump calls for one-year cap on credit card interest rates at 10%: Key points explained

US President Donald Trump has announced a proposal to cap credit card interest rates at 10% for one year, a move that could affect millions of Americans if it comes into effect. The announcement revives a campaign promise and reopens a long-running debate in the United States over high borrowing costs.What did Trump announce?

On Friday (January 9), Trump said he was calling for a one-year cap on credit card interest rates

at 10%. He made the announcement on his social media platform Truth Social, saying that credit card companies charge excessively high rates, often ranging from 20% to 30% or more.
Trump said the proposed cap would take effect on January 20, 2026.He noted that the date would mark one year since the start of his current presidential term, which he described as successful.

Is this a new proposal?

Trump first made the promise during his 2024 election campaign, which he later won. Similar proposals have also surfaced in the US Congress in recent years, but no law imposing a cap on credit card interest rates has been passed so far.

How would the cap be enforced?

The White House has not provided details on how the proposed interest rate cap would be implemented or enforced. In a separate social media post, the White House said Trump was moving to limit credit card interest rates but did not elaborate, Reuters reported.

How have banks and card issuers responded?

Major US banks and credit card issuers, including American Express, Capital One Financial, JPMorgan, Citigroup and Bank of America, did not immediately comment on the announcement.

What has Congress said about credit card rates?

Lawmakers from both major parties have raised concerns about high credit card interest rates. Senators Bernie Sanders and Josh Hawley have previously introduced bipartisan legislation to cap credit card interest rates at 10% for five years.

In the House of Representatives, Democratic lawmaker Alexandria Ocasio-Cortez and Republican Congresswoman Anna Paulina Luna have introduced a similar bill, reflecting cross-party interest in the issue.

What criticism has the proposal drawn?

Billionaire fund manager Bill Ackman criticised the proposal. He said that limiting interest rates could prompt lenders to cancel credit cards for millions of consumers, forcing them to seek alternative forms of credit.

Are there related policy moves?

Last year, the Trump administration moved to scrap a credit card late-fee rule that had been introduced under former President Joe Biden.

–With Reuters inputs