At a Glance
- President Trump proposes 10% cap on credit card interest rates
- Could save Americans $100 billion annually
- Industry opposes measure despite campaign donations
- Why it matters: Your credit card rates could drop from 25% to 10% if enacted
President Trump wants to cap credit card interest rates at 10%, a campaign promise that could save Americans billions but faces opposition from the industry that supported his campaign.
The Proposal
Trump announced the plan Friday on Truth Social, calling for immediate action against credit card companies charging 20-30% interest. He wants implementation by January 20, one year after taking office.
The president hasn’t specified whether this would happen through executive action or legislation. One Republican senator confirmed discussing the measure with Trump and working on legislation.
Industry Opposition
Credit card companies strongly oppose the proposal, despite donating heavily to Trump’s 2024 campaign. Banks argue the cap would hurt poor Americans by limiting credit access.
Banking industry claims:
- Would drive consumers to payday loans
- Might eliminate credit lines for risky borrowers
- Could force lending changes
Current rates: 19.65% to 21.5% average interest
Proposed cap: 10% maximum
Potential savings: $100 billion annually
Political Support
The measure has backing across political spectrum:
- Republicans: Sen. Marshall confirms working with Trump
- Democrats: Sens. Sanders supports similar measures
- Bipartisan: Hawley also backs interest rate caps
Implementation Questions
Unclear aspects:
- How exactly rates would be capped
- Timeline for implementation
- Industry response details
Previous examples: Military Lending Act caps rates for service members at 36%
Key Takeaways
- Your credit card rates could drop from 25% to 10%
- Banks warn of reduced credit access
- $100 billion in potential savings
- Implementation details still unclear
The proposal represents a major shift from Trump’s previous industry support, directly challenging credit card companies’ profit models.
