Trump promised 10% credit card rate caps by Jan. 20 – nothing’s…

Trump promised 10% credit card rate caps by Jan. 20 – nothing’s…

Trump is asking for a ten% cap on credit card rates of interest (Image: Getty Images)

The Trump administration has been under strain to handle Americans’ price-of-residing considerations ahead of the midterm elections later this yr. 

Trump launched a new tactic to sort out affordability by calling for a ten% cap on credit card rates of interest. However, nothing has come out of this thought yet, and it’s unclear if it’s going to ever occur.

In a Truth Social Post on Friday, Jan. 9, Trump wrote that his administration would not permit Americans to be “ripped off” by credit card firms.

“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 president wrote in his put up.

Credit card rates of interest have been round 20% lately, making a ten% cap a major rate reduce. According to client debt data from the Federal Reserve Bank of New York, Americans’ credit card debt reached $1.23 trillion in the third quarter of 2025.

Millions of Americans may lose entry to credit if Trump’s proposal is accredited (Image: Getty Images)

Earlier this month, Trump told reporters on Air Force One that if charges haven’t been capped by the deadline, “then they’re in violation of the law.”

“They really abused the credit cards,” he said of major credit card lenders.

While Trump set an efficient compliance date of Tuesday, Jan. 20, the day has come and gone, and the president hasn’t issued info on how this proposal can be enforced by way of laws. This curiosity rate cap would probably require congressional approval.

Lawmakers — including those from Trump’s personal Republican Party — and banking business teams have expressed warning since the president proposed the 10% curiosity rate cap on credit playing cards.

What would occur if credit card charges had been capped? 

Critics of Trump’s proposal are warning that a ten% cap on credit card rates of interest may have major ramifications for Americans, doubtlessly endangering hundreds of thousands of people’s entry to credit.

Republican Speaker Mike Johnson told reporters last week that Trump’s cap may pose “negative secondary effects.” He said that this proposal would require laws and that the House “ought to think about and investigate.”

“That would have a negative effect on a lot of people who work on revolving credit. So it’s something that we got to be very deliberate about,” Johnson said.

The American Bankers Association also launched a assertion on the proposed cap, warning that “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.”

A new examine from the Electronic Payments Coalition discovered that a ten% cap would remove entry to credit for 82% to 88% of open credit card accounts. It revealed that 175 to 190 million Americans would utterly lose entry to credit with this cap.

Additionally, the examine discovered that customers without credit card entry would probably be pushed to show to increased-threat options, such as payday lenders and pawn retailers.

In February of 2025, bipartisan laws was launched by Senators Josh Hawley and Bernie Sanders, calling on Congress to right away cap credit card rates of interest at 10% for 5 years. However, the proposal did not advance in Congress. Hawley launched a assertion last week urging Congress to go his beforehand launched laws.

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