Trump Announces One-Year Cap on Credit Card Interest Rates at 10%, Sparking Debate

Washington, January 11, 2026 — President Donald Trump has called for a temporary one-year cap on credit card interest rates at 10%, effective January 20, 2026 — the one-year anniversary of his second inauguration. The proposal, announced via Truth Social on January 10, aims to address what the president described as excessive charges by credit card companies amid persistent affordability concerns for American consumers.

In his post, Trump stated: “Please be informed that 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, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY! 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%.”

The announcement revives a pledge from Trump’s 2024 campaign and comes as U.S. credit card debt stands at record levels, exceeding $1.2 trillion, with average annual percentage rates (APRs) hovering between 19.65% and 23.79% for new offers, according to recent data from Bankrate and LendingTree.

Supporters of the idea argue it could provide significant relief to millions of Americans struggling with high-interest debt. The proposal echoes earlier bipartisan efforts, including bills backed by Senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) to impose longer-term caps.

However, the banking industry swiftly criticized the plan. In a joint statement, the American Bankers Association and other groups warned that a 10% cap would “reduce credit availability” and “drive consumers toward less regulated, more costly alternatives.” Economists and critics, including ShapeShift founder Erik Voorhees, echoed these concerns, arguing that lenders would respond by tightening standards, potentially limiting access for higher-risk borrowers.

On social media, investor Anthony Pompliano highlighted the political timing in a widely viewed X post: “The President of the United States says he is going to cap credit card interest rates at 10% for one year. We are about to see an all out effort to make life more affordable for the average American. Midterm season is upon us.” Pompliano later clarified he was predicting a wave of similar affordability initiatives ahead of the 2026 midterm elections, rather than endorsing the policy’s merits.

The White House has not detailed how the cap would be implemented or enforced, raising questions about its legal feasibility without congressional action. With Republicans controlling both chambers of Congress, the proposal could gain traction, though banking lobby opposition may complicate passage.

The move underscores Trump’s focus on economic populism in his second term, as consumer debt and living costs remain key voter concerns. Markets showed mixed reactions, with shares in major credit card issuers dipping slightly in after-hours trading following the announcement.