Trump Proposes 10% Credit Card Interest Rate Cap

Addressing High Consumer Credit Costs

In a significant move to protect consumers, US President Donald Trump has announced plans to cap credit card interest rates at 10% per year starting January 20, 2026. The proposal, made through a Truth Social post, marks a potential major shift in consumer credit regulation.

Background and Implications

The current US credit card market is characterized by significantly higher interest rates than Trump's proposed cap. The move is seen as a response to consumer complaints about predatory lending practices by credit card companies. While details of implementation are not yet available, the proposal suggests a more stringent regulatory environment for consumer credit products.

Regulatory and Market Impact

If implemented, this policy could have far-reaching effects on the US financial services industry, particularly credit card issuers. The regulation may lead to reduced revenue for credit card companies, potentially resulting in changes to fee structures or eligibility criteria. The impact on consumers could be significant, with potentially billions of dollars in saved interest payments annually.