Credit card interest rates have become a growing burden for millions of Americans, and President Donald Trump has now put forward a controversial proposal aimed at easing that pressure. On Friday, Trump called for a one-year cap on credit card interest rates at 10%, arguing that consumers are being unfairly overcharged by banks and card issuers.
In a post on Truth Social, Trump said credit card companies are “ripping off” the American public by charging interest rates that often range between 20% and 30% or more. He proposed that the cap take effect on January 20, 2026, marking the one-year anniversary of his return to the White House.
However, while the announcement grabbed attention, Trump did not explain how such a cap would be enforced, or whether he expects credit card companies to voluntarily comply or Congress to pass legislation.
Why Credit Card Interest Rates Are in the Spotlight
Credit card interest rates have climbed steadily over the past decade. According to Federal Reserve data, the average credit card APR reached about 22.3% in late 2025, up sharply from around 13% in 2013. For households already dealing with high prices for food, housing, and utilities, these rates make it harder to manage everyday expenses.
Many lower-income Americans rely on credit cards to cover basic needs, and high interest charges can quickly trap them in long-term debt. While wealthier households have benefited from rising wages, strong stock markets, and higher home values, others have been squeezed by a mix of inflation, rising debt, and a slowing job market.
Trump framed his proposal as a direct response to these affordability concerns, repeatedly emphasizing the word “AFFORDABILITY” in his post.
Part of a Broader Populist Push
The proposed cap on credit card interest rates is the latest in a series of populist economic messages from Trump this week. Earlier, he claimed to have ordered representatives to buy mortgage bonds to lower housing costs and suggested banning institutional investors from buying single-family homes.
These announcements appear designed to show action on the cost-of-living issue, which remains a major concern for voters. Despite this, public opinion remains skeptical. A recent CNN poll found that 61% of Americans believe Trump’s economic policies have worsened overall economic conditions.
Legal and Political Hurdles Ahead
Experts say it is unclear whether a president can unilaterally impose a nationwide cap on credit card interest rates without Congress. Currently, credit card practices are primarily overseen by the Consumer Financial Protection Bureau (CFPB).
Ironically, the Trump administration has worked to weaken the CFPB, an agency long criticized by conservatives. Under former President Joe Biden, the CFPB attempted a different approach by proposing a cap on most credit card late fees at $8. That move was blocked by a federal judge.
Meanwhile, legislation already exists that targets high credit card interest rates. A bipartisan bill sponsored by Sen. Bernie Sanders and Sen. Josh Hawley would cap rates at 10% for five years, though it has not yet passed.
What This Means for Consumers
If implemented, a temporary cap on credit card interest rates could provide meaningful relief for households struggling with debt. Lower rates would reduce monthly interest charges and make it easier for borrowers to pay down balances.
However, without clear enforcement mechanisms or legislative backing, Trump’s proposal remains more of a political signal than a guaranteed policy change. Credit card companies and the broader financial industry have historically resisted interest rate caps, arguing they could limit access to credit.
For now, Americans burdened by high credit card interest rates are left watching to see whether this proposal turns into concrete action—or remains another headline in the ongoing affordability debate.
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