Trump demands a one – year limit of 10% on credit card rates

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On Friday, President Donald Trump called for a one – year limit on credit card interest rates at 10%, starting from January 20, without giving specific details.

“Be aware that we won’t allow the American public to be ‘cheated’ by credit card companies that are charging interest rates of 20% to 30% or even higher, which went unchecked during the Sleepy Joe Biden Administration. Affordability!” he posted on social media.

It remains unclear whether credit card companies will respond to his call or what measures he might take to enforce any changes.

This post comes as the Trump administration ramps up efforts to show voters that the president is dealing with concerns about costs and prices, which have become a key issue in the November mid – term elections.

During the 2024 presidential campaign, Trump promised to seek restrictions on the interest that credit card companies can charge.

Hours before his Friday message, Senator Bernie Sanders, an independent from Vermont, said on X: “Trump promised to cap credit card interest rates at 10% and stop Wall Street from getting away with excessive actions. Instead, he deregulated big banks that charge up to 30% interest on credit cards.”

In a letter last year to Sanders and Senator Josh Hawley, a Republican from Missouri, a group of banking trade associations described a bleak outcome for consumers if the government were to cap credit card interest rates at 10%, as the senators had proposed.

“Many consumers who currently depend on credit cards would have to look elsewhere for short – term financing, including pawn shops, auto title lenders, or even worse – like loan sharks, unregulated online lenders, and the black market,” the group wrote.

The Bank Policy Institute said in a [missing reference] last year that “while the proposed cap is a well – intentioned attempt to reduce the high debt burden some households face, it would harm consumers’ access to credit card services.” The group also stated that such a move could force card issuers to cut cardholder benefits, including attractive rewards related to purchases.

Responding to Trump’s post on Friday, Hawley said on X: “Great idea. Can’t wait to vote for this.”