Trump Proposes 10% Cap on Credit Card Rates

President Donald Trump announced Friday a proposal to cap credit card interest rates at 10 percent for one year, starting January 20, 2026, as part of an effort to reduce borrowing costs for American consumers. The move, shared on his Truth Social platform, targets rates that currently average around 21 percent and targets the nation's roughly 1.3 trillion dollars in outstanding credit card debt.

Trump described the high rates as exploitative, stating, "We will no longer let the American Public be ripped off by Credit Card Companies that are charging Interest Rates of 20 to 30, and even more." He framed the cap as a step toward greater affordability, coinciding with the one-year anniversary of his second term in office. The announcement revives a campaign promise Trump first made in September 2024 at a rally in New York, where he pledged temporary relief for working Americans carrying balances.

The proposal comes amid persistent economic pressures on households, where interest on credit card debt exceeds 100 billion dollars annually. For example, a 10,000-dollar balance at current rates could accrue more than 3,500 dollars in interest over three years, compared to just over 6...