President Trump's Push for Credit Card Rate Caps and Competition Reform

On January 20, 2026, President Donald Trump set a deadline for credit card companies to comply with his proposal to cap interest rates at 10% for one year. This initiative aims to address the growing credit card debt in the United States, which reached approximately $1.23 trillion in the third quarter of 2025. Trump's remarks at the World Economic Forum in Davos, Switzerland, highlighted concerns over excessive profits made by credit card companies, which he stated have profit margins exceeding 50%.

Merchants Say ‘The President is Right’ on High Credit Card Company Profits

Trump's proposal coincides with his endorsement of the Credit Card Competition Act (CCCA), which aims to reduce swipe fees charged by credit card companies. The bill was reintroduced in both the Senate and House by Senators Roger Marshall (R-Kansas), Dick Durbin (D-Illinois), and Peter Welch (D-Vermont), along with Representatives Lance Gooden (R-Texas) and Zoe Lofgren (D-California). The CCCA is supported by nearly 2,000 companies and 300 trade associations, emphasizing the need for reform to alleviate the financial burden on small businesses and consumers.

Merchants Say ‘The President is Right’ on High Credit Card Company Profits

While Trump's proposal has garnered bipartisan support, the banking industry has expressed significant concerns. Banks argue that a 10% cap on interest rates could limit access to credit for higher-risk borrowers, potentially leading to reduced credit limits and account closures. According to a January 12 analysis from America's Credit Unions, two-thirds of credit card users carrying a balance might see their credit lines reduced or canceled entirely. Critics, including Horacio Mendez, CEO of the Woodstock Institute, warn that the cap could push consumers towards predatory lending options if traditional credit sources become less accessible.

Can President Trump really cap credit card interest rates at 10%?Trump's 10% credit card cap deadline is here. Will card companies comply?Trump Calls for 10% Cap on Credit Card Interest Rates. What It Could Mean for Consumers

White House Press Secretary Karoline Leavitt stated that Trump expects credit card companies to comply with the proposed cap, although no specific enforcement mechanisms have been outlined. Mendez emphasized the need for a comprehensive regulatory framework to ensure that the cap does not lead to unintended consequences, such as increased fees or restricted access to credit for vulnerable populations.

Can President Trump really cap credit card interest rates at 10%?

• “The profit margin for credit card companies now exceeds 50%, one of the biggest,” — President Donald Trump

Merchants Say ‘The President is Right’ on High Credit Card Company Profits

• “The President is right — the credit card industry is making outrageous profits on the backs of Main Street merchants and their customers every day,” — Doug Kantor, MPC Executive Committee member

Merchants Say ‘The President is Right’ on High Credit Card Company Profits

As the deadline for compliance approaches, the future of Trump's proposal remains uncertain. While the CCCA has bipartisan backing, it has yet to advance significantly in Congress. The banking industry continues to voice opposition, and the effectiveness of Trump's proposed cap will depend on legislative action and potential legal challenges.

Trump's 10% credit card cap deadline is here. Will card companies comply?

In summary, President Trump's push for a 10% cap on credit card interest rates and support for the Credit Card Competition Act reflects ongoing concerns about consumer debt and financial equity. However, the implications of such measures remain a topic of debate among policymakers, industry leaders, and consumer advocates.

Trump Calls for 10% Cap on Credit Card Interest Rates. What It Could Mean for Consumers