US President Donald Trump has announced a proposal to implement a one-year cap on credit card interest rates at 10 percent, starting on January 20, 2026. This announcement, made via his social media platform Truth Social, comes amid ongoing discussions about high credit card rates that have drawn bipartisan concern.
Trump’s call for a cap lacks detailed implementation plans and does not clarify how compliance from credit card companies would be enforced. His statement follows a similar pledge made during his campaign for the 2024 presidential election. At that time, analysts highlighted that such a measure would require approval from Congress, which has not yet materialized.
Political Reactions and Legislative Challenges
Concerns regarding high credit card interest rates have been voiced by lawmakers from both the Democratic and Republican parties. Despite holding a narrow majority in both the Senate and the House of Representatives, legislative efforts to cap rates have been stalled, and no specific bills have been endorsed by Trump in his latest statement.
In response to Trump’s announcement, Senator Elizabeth Warren, a prominent Democrat on the Senate Banking Committee, criticized the proposal as ineffective without legislative backing. “Begging credit card companies to play nice is a joke,” Warren stated, emphasizing that she had previously offered to work on a bill if Trump was serious about the issue. Her remarks also included a reference to Trump’s previous attempts to undermine the Consumer Financial Protection Bureau, which plays a role in regulating financial practices.
The White House has not provided any immediate details regarding Trump’s proposal but acknowledged his intention to cap interest rates through a social media post, offering little further clarification.
Industry Concerns and Responses
Responses from major US banks and credit card issuers, such as American Express, Capital One Financial Corp, JPMorgan, Citigroup, and Bank of America, have been absent following Trump’s announcement. Banking advocacy groups have expressed their concerns as well, warning that a 10 percent cap on interest rates could hinder credit availability for consumers. In a joint statement, organizations including the Consumer Bankers Association and the American Bankers Association argued that such a measure would push consumers toward less regulated and potentially more costly lending options.
As discussions continue, the implications of Trump’s proposal remain uncertain, particularly regarding its potential impact on consumers and the financial industry. Observers will be watching closely as lawmakers react and consider the feasibility of implementing such a cap in the current political climate.
