Trump Proposes One-Year Cap on Credit Card Interest Rates

A new policy proposal to cap credit card interest rates was announced by Trump on his social media platform. The plan would need legislative approval and cannot be enacted through executive authority alone.

The proposal outlines a one-year limit on credit card interest rates. Current US credit card interest rates vary widely, with averages near 20% and some rates reaching up to 36% depending on borrowers' credit profiles.

Trump shared the details of the proposed cap using his Truth Social account. The announcement follows previous actions during his administration related to credit card fee regulations.

Congressional action would be necessary for the proposal to become law, as the measure cannot be implemented solely by the executive branch. The announcement comes as Americans continue to carry substantial credit card balances.

What the numbers show

• US credit card debt was about $1.1 trillion as of early 2026
• Americans owed $1.23 trillion in credit card balances in Q3 2025
• Average credit card interest rates are around 20%, with a range from 17.7% to 36%

Major banking industry associations have publicly opposed the proposed cap. They stated that such a measure could restrict access to credit and increase the likelihood that consumers turn to alternative lenders.

Senator Elizabeth Warren stated that the proposal would have no effect without support from Congress. She referred to the announcement as lacking substance in the absence of legislative action.

During a prior term, Trump worked to reverse a rule that limited late fees on credit cards. This earlier policy effort also addressed consumer credit costs, though through a different regulatory approach.

The current policy proposal adds to ongoing discussions about consumer debt and credit costs in the United States. Legislative debate would be required before any cap on credit card interest rates could be established.

Industry reaction

Banking industry groups have opposed the proposed interest rate cap, stating it could reduce credit availability and drive consumers toward riskier lending options.

Senator Elizabeth Warren stated that the announcement would be ineffective without Congressional backing, emphasizing the need for legislative action to enact such a cap.

* This article is based on publicly available information at the time of writing.