Trump proposes 10% cap on credit card interest rates from January 20. Details here

US President Donald Trump has announced plans to impose a temporary cap on credit card interest rates, pitching the move as a consumer-friendly step aimed at improving affordability for American households burdened by high borrowing costs.

In a post on his social media platform, Trump said credit card companies charging interest rates of 20 to 30 per cent or higher have been “ripping off” the American public. He blamed the Biden administration for allowing such practices to continue unchecked and positioned his proposal as a corrective measure.

What has Trump announced?

Trump said that, effective January 20, 2026, he is calling for a one-year cap of 10 per cent on credit card interest rates. The date coincides with what he described as the first anniversary of his “very successful” return to the White House.

The proposed cap would apply for one year and is intended, according to Trump, to make borrowing more affordable at a time when many Americans are struggling with high living costs and accumulated consumer debt.

Why credit card rates are in focus

Credit card interest rates in the US have climbed sharply in recent years, tracking the Federal Reserve’s aggressive rate hikes to combat inflation. Average credit card APRs currently hover at historically high levels, making revolving debt significantly more expensive for consumers.

Trump’s announcement taps into growing voter frustration over household finances, positioning credit card companies — rather than inflation or monetary policy — as the primary culprit.

Can the president cap credit card interest rates?

While Trump framed the move as a presidential action, implementing a nationwide cap on credit card interest rates would likely require legislative approval and could face legal and regulatory hurdles. Banking and financial industry groups have historically opposed interest rate caps, arguing they could restrict access to credit, particularly for higher-risk borrowers.

Details on enforcement, scope, and whether the cap would apply to existing balances or only new borrowing were not outlined in the statement.

What happens next?

The announcement signals a potential policy push rather than an immediately enforceable rule. Lawmakers, regulators, and the financial industry are expected to scrutinise the proposal closely in the coming months.

For consumers, the plan — if implemented — could significantly reduce interest costs on outstanding credit card debt. However, questions remain over feasibility, timelines, and possible unintended consequences for credit availability.