(NewsNation) — President Donald Trump is calling for a one-year cap on credit card interest rates at 10%, starting Jan. 20.
Credit card interest rates have jumped in recent years, averaging 14% in 2021 and rising to 21% by 2025. In a post on social media, Trump wrote, “We will no longer let the American public be ‘ripped off’ by credit card companies that are charging interest rates of 20 to 30%.”
For average Americans carrying a balance, a lower cap sounds like immediate relief. The president’s proposal has drawn bipartisan support in Congress, with lawmakers from both sides arguing that current interest rates trap working families in debt. However, while the politics of the cap are straightforward, the economics and potential challenges of enforcing such a policy are far more complex.
The White House is trying to turn a cap into a voluntary product, rather than a law that must survive Congress. Kevin Hassett, director of the National Economic Council, said on Fox Business on Friday that the administration is in discussion with major banks.
“CEOs of many of the big banks who think that the President is on to something, that he’s got a great idea,” Hassett said. “So our expectation is that it won’t necessarily require legislation, because there will be really great new trump cards presented for folks that are voluntarily provided by the banks.”
Hassett’s point is that if banks offer a “Trump card” with a lower rate, there’s no waiting on a bill to pass both chambers. But there’s a catch. If it’s voluntary, banks can also decide who gets it and on what terms.
Credit cards are unsecured, so banks price in default risk. They’ve warned that a hard cap could mean tighter credit, lower limits, fewer approvals, or account closures for riskier borrowers.
Several companies that offer high-rate credit cards to less creditworthy customers could simply vanish.
Trump has used a similar branding before. In April 2025, he unveiled the “gold card” immigration idea while flying on Air Force One.
“Very excitingly, for me and for the country, we’ve just launched the Trump Gold Card,” he said. “It was about 30 minutes from now. The site goes up, and all funds go to the United States government. Could be a tremendous amount.”
The White House is trying to sell the same concept, a Trump-branded ‘card’ as a way around the legislative logjam. The question is whether any major banks sign on and what Americans have to give up to get that lower rate.