President Donald Trump recently reignited a key campaign pledge, announcing on his Truth Social platform on January 9, 2026, a call for a one-year, 10% cap on credit card interest rates, ideally effective January 20, 2026. This move, if implemented, could potentially save American consumers tens of billions of dollars annually, as current average credit card interest rates often exceed 20-30%. Trump's proposal, however, has been met with immediate and strong opposition from major financial institutions and banking trade groups, including the American Bankers Association and the Bank Policy Institute. Banks argue that a mandatory interest rate cap would have "devastating" unintended consequences, primarily by significantly reducing the availability of credit, especially for subprime borrowers or those with lower credit scores. They contend that such a measure would force lenders to cancel cards or tighten lending standards, potentially pushing vulnerable consumers toward less regulated and even higher-cost alternatives like payday loans or pawn shops. Financial analysts have also expressed skepticism about the proposal's viability, noting that the President typically lacks the direct authority to dictate interest rates without congressional legislation. While Trump did not specify whether the cap would be enacted via executive action or legislative means, bipartisan efforts by Senators Bernie Sanders and Josh Hawley to introduce similar 10% interest rate cap legislation in Congress have previously struggled to gain traction. The discussion around credit card interest rate caps has been a recurring theme in U.S. politics, underscoring ongoing concerns about consumer debt and financial affordability. Total U.S. credit card debt stands at over $1 trillion.