In a significant policy announcement, former United States President Donald Trump has called for a major cap on credit card interest rates, aiming to provide relief to American consumers. The proposal, made via his social media platform Truth Social, targets what he describes as exorbitant charges by financial companies.
The Announcement and Its Timing
On January 10 (IST), Donald Trump stated his intention to implement a one-year cap on credit card interest rates at 10%. He specified that this measure would take effect from January 20, 2026. Notably, he pointed out that this date would mark the one-year anniversary of the beginning of his potential second term in office, referring to it as the "historic and very successful Trump Administration."
Rationale Behind the Proposed Cap
While detailed legislative or executive mechanisms were not outlined, the former President's primary stated goal is to enhance "affordability" for American citizens. In his post, Trump strongly criticised the current practices of credit card issuers. He asserted that his administration would no longer allow the American public to be "ripped off" by companies that routinely charge interest rates ranging from 20% to 30% or even higher.
Potential Implications and Market Reaction
This announcement, made during an election cycle, is poised to become a major talking point in discussions about consumer finance and economic policy. A cap of this magnitude, if enacted, would represent a dramatic shift in the US consumer credit landscape. It could significantly reduce borrowing costs for millions of cardholders but would also likely impact the revenue models of banks and credit card companies. The financial industry is expected to scrutinise the proposal closely, debating its feasibility and potential effects on credit availability. As this is a developing story, further details regarding the implementation plan are awaited.
