Trump’s Proposed 10% Credit Card Rate Cap Fails to Take Effect

Trump’s Proposed 10% Credit Card Rate Cap Fails to Take Effect

On January 20, 2026, President Donald Trump’s call for a 10% cap on U.S. credit card interest rates officially went into effect—at least on paper. In practice, however, the move has had little impact, with card rates largely unchanged.

Trump’s announcement, made via Truth Social on January 9, proposed a one-year cap of 10% on credit card interest, roughly half the industry average, targeting rates that often range between 20% and 30% or higher. Trump framed the measure as a protection for American consumers from “being ripped off” by the financial industry.

Despite the deadline, no major card issuers have adopted the rate cap. Financial analysts and consumer experts note that there have been no official statements or actions indicating compliance. “Not one whisper,” said Stephen Kates, a banking analyst at Bankrate.

Experts caution consumers not to expect immediate changes to their bills. “If you’re hoping to see rates drop from 20% to 10%, don’t hold your breath,” Kates added.

Trump has continued to emphasize the cap in public remarks, suggesting that noncompliant card companies could be “in violation of the law.” Yet, legal and financial authorities note that the president lacks the unilateral power to enforce such a cap. Implementing a nationwide credit card interest limit would require congressional legislation.

Indeed, key Republican leaders, including House Speaker Mike Johnson, have voiced concerns about potential secondary effects, such as limiting access to credit for individuals with lower credit scores. Kevin Hassett, director of the National Economic Council, suggested alternative measures such as specialized banking products for higher-risk borrowers.

Industry groups have collectively rejected the 10% cap. A joint statement from credit card associations warned that the proposal could harm millions of American families and small businesses that rely on access to credit.

Trump’s effort is not the first attempt to address high credit card rates. During the 2024 campaign, he proposed a similar 10% cap, and bipartisan legislation introduced by Senators Bernie Sanders and Josh Hawley included the measure. However, the bill stalled amid opposition from the banking sector.

Credit card debt in the U.S. has surged to $1.2 trillion as of Q3 2025, a 60% increase over four years, according to federal data and industry analyses. Average interest rates currently sit around 19.6%, near historic highs.

Critics of the cap argue that such a limit could reduce access to credit for millions of Americans with lower credit scores, potentially shutting them out of the credit card market entirely. However, consumer advocacy groups acknowledge the importance of raising awareness about the financial burden of high interest rates.

As the debate continues, Americans with credit cards are left largely unaffected, while the discussion highlights the ongoing tension between consumer protection and financial industry practices.

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