In a recent speech at the World Economic Forum in Davos, Donald Trump announced his support for a plan to cap credit card interest rates at 10% per year. This cap would begin on January 20, 2026, and last for one year. Trump argued that this plan is necessary to help Americans recover from high debt levels. He pointed out that current interest rates can range from 28% to 32%. The former president blamed these high rates on policies from the Biden administration and urged Congress to pass the legislation.
Donald Trump supports capping credit card interest rates at 10% to aid Americans burdened by high debt levels.
The proposal, known as the 10 Percent Credit Card Interest Rate Cap Act, was introduced in February 2025. If passed, it would sunset on January 1, 2031. The legislation states that creditors would lose all interest if they violate the cap and allows debtors to sue for damages. While Trump sees this as a way to protect consumers, experts have raised concerns.
Jamie Dimon, the CEO of JPMorgan, has called the 10% cap an “economic catastrophe.” He believes it could cut off credit access for up to 80% of Americans. Dimon warns that it would remove backup credit for many consumers who rely on credit cards. His CFO, Jeremy Barnum, echoed these fears. He predicted that credit access would drop considerably, especially for those who need it most.
Many in the credit industry oppose the cap. Credit unions argue it could make things worse for families needing access to credit. They fear that limiting rates to 10% would lead to fewer options for consumers. Additionally, an analysis found that almost 190 million cardholders, mostly from lower- and middle-income families, could be affected by the proposed interest rate cap. Credit unions provide credit card rates below market averages and advocate for expanding access to existing affordable financial institutions.
As discussions continue, the potential impacts of Trump’s credit card interest cap remain a hot topic, with many experts warning it could harm the very people it aims to help.
