Trump Proposes 10% Cap on Credit Card Interest Rates for One Year

• Trump's announcement lacked details on how companies would be compelled to comply, and similar proposals from Senators Sanders and Hawley, as well as Representatives Ocasio-Cortez and Luna, have not yet become law despite bipartisan support
• Major credit card issuers including American Express, Capital One, JPMorgan, Citigroup, and Bank of America did not immediately comment on the proposal
• Bill Ackman called the plan a 'mistake,' warning that lenders unable to charge rates adequate to cover losses would cancel cards for millions, forcing consumers to turn to loan sharks charging higher rates

Summary: Trump Proposes 10% Cap on Credit Card Interest Rates

Key Development:

President Trump announced Friday on Truth Social a proposal to cap credit card interest rates at 10% for one year, effective January 20, 2026. The proposal lacks implementation details and enforcement mechanisms, with analysts noting such action would require congressional approval.

Companies Affected:

Major credit card issuers and banks contacted for comment include American Express, Capital One Financial Corp, JPMorgan, Citigroup, and Bank of America. None provided immediate responses.

Political Context:

The proposal has gained bipartisan interest in Congress. Senator Bernie Sanders (D) and Senator Josh Hawley (R) previously introduced legislation for a 10% cap over five years, while Representatives Alexandria Ocasio-Cortez (D) and Anna Paulina Luna (R) proposed similar House legislation. Republicans currently hold narrow majorities in both chambers.

Market Implications:

Billionaire investor Bill Ackman, a Trump supporter, called the proposal a "mistake," warning that inadequate returns would force lenders to cancel millions of cards, pushing consumers toward predatory loan sharks charging higher rates. The lack of details raises questions about feasibility and industry compliance.

Background:

Trump made this pledge during his 2024 campaign but provided no specifics then. His administration recently blocked a Biden-era rule capping credit card late fees at $8, successfully arguing in federal court that the regulation was illegal.

Status:

The proposal remains a call to action without legislative backing or clear implementation pathway. Both parties have expressed concern about high credit card rates, though no specific bills have become law.