Trump says won't let Americans be 'ripped off,' offers relief from 20-30% credit card interest rates

United States President Donald Trump has called for a one-year cap of 10 per cent, vowing that his administration will no longer let the American public be "ripped off" by credit card companies that charge 20 to 30 per cent interest rates.

Trump's 'anniversary gift' to the American public?

In a post on Truth Social, Trump said that the cap would take effect on January 20, 2026, exactly one year after he returned to office. This effectively makes the credit card interest cap an "anniversary gift" to the American public. The announcement happens to be the fulfilment of a key campaign promise made during the 2024 presidential race, one that critics had repeatedly accused him of shelving during much of his first term.

"Effective January 20, 2026, I, as President of the United States, am calling for a one-year cap on Credit Card Interest Rates of 10%," Trump wrote. He said the date would coincide with what he called the "historic and very successful" first year of his administration.

The president also took aim at his predecessor, Joe Biden, blaming him for allowing high interest rates. The high interest rates "festered unimpeded during the Sleepy Joe Biden Administration," he claimed.

Can Trump implement this unilaterally without the US Congress?

Trump did not outline how the cap would be implemented or whether it would require congressional approval. Still, he argued that the intent was clear. "Please be informed that we will no longer let the American Public be 'ripped off' by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more", he said, casting the move as part of a broader affordability push.

However, Trump cannot implement the cap unilaterally. To do it formally would require congressional legislation. His announcement, for now, is more of a proposal or call for action, and not an immediate executive order.

Reactions to Trump's credit cap announcement

On X, the official White House account reposted the Truth Social message with the caption "HUGE: President Donald J. Trump announces a one-year cap on Credit Card Interest Rates of 10% effective January 20, 2026."

The announcement triggered swift reactions with many celebrating the interest rate cap, however other raised concern about the POTUS attempt to control market forces. "what this will do is force the credit card companies to drop all the people who have bad credit and only provide credit to those who have good and excellent credit," pointed out Brian Krassenstein, an anti-Trump influencer and podcaster.
Similarly, not all of Trump’s allies were impressed. Billionaire investor Bill Ackman who had endorsed Trump during the 2024 presidential elections, publicly criticised the proposal, warning it was a "mistake". He argued that limiting rates would push lenders to cancel cards for higher-risk consumers, potentially driving them toward "loan sharks".