Trump says Americans will no longer be ‘ripped off’ by credit card companies under his latest move

Rising credit card debt is a major cause of concern for Americans, as it also affects household savings and overall financial stability. Now, President Donald Trump has proposed a new plan to crack down on credit card companies from charging high interest rates. In a post on his social media platform, Truth Social, the president announced he will impose a one-year cap on credit card rates for 10%. Like his other recently proposed plans, Trump did not specify how the cap might be rolled out, and it isn't clear if he was calling for voluntary participation by credit card companies or looking for a mechanism for the federal government to enforce the rule.

In his post, Trump reasoned that affordability was the primary reason behind his proposing the measure. He blamed former President Joe Biden for the high credit card interest rates, calling out his administration for letting companies get away with it. He said under the previous administration, the credit card companies charged 20% to 30% interest rates, adding to the affordability crisis. "Please be informed 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, which festered unimpeded during the Sleepy Joe Biden Administration," the president wrote.

With the 2026 midterm elections approaching, the Trump administration has been scrambling to address rising public concern over affordability, a political vulnerability that Democrats are likely to exploit. With inflation outpacing wages, soaring housing costs, and intense voter scrutiny on economic issues, the administration is seeking ways to counter voter sentiment with Republican policies, CNN reported.

On the other hand, credit card interest rates represent a significant portion of financial institutions’ revenue, and capping rates could backfire for consumers as banks may tighten lending standards, making it difficult for lower-income groups or people with lower credit scores to access credit. Members of the banking industry, including the Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America, issued a joint statement outlining the repercussions of the president's move. 

“We share the President’s goal of helping Americans access more affordable credit. At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help," the groups wrote. “If enacted, this cap would only drive consumers toward less regulated, more costly alternatives,” the statement added.

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