economy
January 18, 2026
Trump launches reckless war on credit cards
Bank-bashing is one of America’s oldest and most cherished traditions, and President Donald Trump is grabbing hold of it with both hands. He recently called left-wing Sen. Elizabeth Warren (D-MA) to discuss his embrace of her proposal — with fellow socialists Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) — to cap credit card interest at an annual rate of 10%. A day later, Trump endorsed Sen. Dick Durbin’s (D-IL) longtime hobbyhorse of imposing price controls on swipe fees, too. Big merchants think that will improve their margins, but Trump’s shift on credit cards is more likely to undermine their customers’ purchasing power. Warren, Sanders, and Ocasio-Cortez have been clear that they want to end private consumer lending and replace it with government programs. Shouldn’t Trump know better?
TL;DR
- President Trump is embracing proposals to cap credit card interest at 10% annually, similar to ideas from Sens. Elizabeth Warren and Bernie Sanders, and Rep. Alexandria Ocasio-Cortez.
- Trump also endorsed controlling swipe fees, a proposal favored by large merchants.
- Industry experts estimate that over 80% of current credit card holders (hundreds of millions of people) could be denied approval for new cards or have existing credit lines reduced or canceled.
- The article argues that bank costs (4% for carrying paper, 5% for credit losses, 5% for administration) make the proposed 10% cap unsustainable, especially since many customers pay balances within the grace period, generating no interest.
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