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President Donald Trump announced Friday that he is calling for a one-year cap, capping credit card interest rates at 10%.
Trump blamed the Biden administration for allowing interest rate hikes of up to 20 to 30%, adding that Americans were being “ripped off” by credit card companies.
“Please note that we will no longer allow the American public to be ‘scammed’ by credit card companies charging interest rates of 20 to 30%, and even more, that have continued to proliferate unchecked during the Sleepy Joe Biden administration,” Trump wrote. Truth Social.
“AFFORDABILITY! Effective January 20, 2026, as President of the United States, I am advocating for an annual cap on credit card interest rates of 10%.”
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Trump noted that the limit would coincide with the one-year anniversary of his return to the White House.
Sen. Bernie Sanders, I-Vt., introduced a bill in February 2025 that would cap credit card interest rates at 10%, but the changes would disappear on Jan. 1, 2031, making it nine years longer than Trump’s proposal.
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President Donald Trump announced Friday that he would try to rein in credit card interest rates with a proposed one-year cap. (Jabin Botsford/The Washington Post via Getty Images/Getty Images)
Earlier Friday, before Trump announced his plan, Sanders criticized Trump for failing to cap credit card interest rates.
“Trump promised to cap interest on credit cards at 10% and stop Wall Street from getting away with murder,” Sanders wrote in an X-post. “Instead, he deregulated big banks that charged up to 30% interest on credit cards. The result? Last year, JPMorgan CEO Jamie Dimon made $770 million. Unacceptable.”
President Donald Trump called for a one-year cap on credit card interest rates, blaming the Biden administration for the high costs. (Brent Lewin/Bloomberg via Getty Images/Getty Images)
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Sen. Elizabeth Warren, D-Mass., the top Democrat on the Banking, Housing and Urban Affairs Committee, responded to Trump’s proposal, calling it a “joke.”
“Begging credit card companies to be nice is a joke,” Warren said in a statement. “I said a year ago that if Trump was serious, I would work on a bill to cap interest rates. Since then, he has done nothing but try to shut down the CFPB.”
Warren accused Trump of not caring about affordability, adding that “Americans know a fraud when they see one.”
Billionaire hedge fund manager Bill Ackman responded to Trump’s announcement, calling the president’s proposal a “mistake.”
“Without being able to charge rates sufficient to cover losses and achieve an adequate return on equity, credit card issuers will cancel cards for millions of consumers who will have to turn to loan sharks for credit at rates higher than and on terms lower than what they previously paid,” he wrote on X.
Sen. Josh Hawley, R-Mo., quickly expressed support for the proposal on X, saying he “can’t wait to vote for this.”
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