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U.S. President Donald Trump has called for a one-year cap on credit card interest rates at 10 percent starting January 20, but the announcement on his social media platform offered no details on enforcement or how such a measure would be implemented without congressional approval.
“Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” Reuters cited Trump writing on Truth Social. “Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies.”
Trump had previously made a similar pledge during his 2024 election campaign, but analysts noted at the time that a presidential proclamation alone cannot override the legislative process.
Lawmakers from both parties have long raised concerns about high credit card rates, yet efforts in Congress to impose a cap have so far not succeeded.
Democratic Senator Elizabeth Warren criticised Trump’s announcement, saying it was meaningless without a bill being passed by Congress.
“Begging credit card companies to play nice is a joke. I said a year ago if Trump was serious I'd work to pass a bill to cap rates,” she said, while also highlighting Trump’s prior moves to weaken the U.S. Consumer Financial Protection Bureau.
Several major banks and credit card issuers, including American Express, JPMorgan, Citigroup, Capital One, and Bank of America, did not comment on the president’s proposal. Banking advocacy groups have warned that a 10 per cent cap could reduce credit availability and push consumers toward less regulated, higher-cost alternatives.
The Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum, and Independent Community Bankers of America issued a joint statement expressing these concerns.
Bipartisan legislation to cap credit card interest rates has been proposed in the past, including bills by Senators Bernie Sanders and Josh Hawley, which sought to limit rates to 10 percent for five years, as well as similar proposals in the House of Representatives by Democrats and Republicans alike.
Critics, including billionaire investor Bill Ackman, have described Trump’s announcement as a “mistake.”
Last year, the administration also sought to overturn a Biden-era rule limiting credit card late fees to eight dollars, a move later struck down by a federal judge.
Without clear legislative backing, analysts warn that Trump’s latest call for an interest rate cap remains largely symbolic, highlighting the challenges of translating campaign pledges into enforceable policy in the U.S. system. - January 10, 2026
