US President Donald Trump has announced plans to impose a temporary 10% cap on credit card interest rates in the country.
On 9 January, President Trump took to Truth Social, the platform operated by the Trump Media and Technology Group (TMTG), to announce the news. He wrote: “We will no longer let the American public be ‘ripped off’ by credit card companies charging interest rates of 20% to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration.”
Trump declared that a one-year 10% cap on credit card interest rates would take effect on 20 January 2026.
Speaking to reporters on 11 January, Trump warned that credit card companies failing to adhere to the proposed cap would be “in violation of the law”.
The initiative has garnered approval from across the political spectrum and comes after Democratic Senator Bernie Sanders and Republican Senator Josh Hawley previously put forward a bill in February 2025 which sought to impose a 10% cap on credit card interest rates for five years.
Despite its bipartisan appeal, support for the proposal is seemingly not universal. In a joint statement, the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America said: “We share the President’s goal of helping Americans access more affordable credit. At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small businesses who rely on and value their credit cards, the very consumers this proposal intends to help. If enacted, this cap would only drive consumers toward less regulated, more costly alternatives. We look forward to working with the administration to ensure Americans have access to the credit they need.”
The announcement had an immediate impact on financial markets, with shares of many leading US credit card issuers experiencing declines.
