US credit card interest cap: Implications for UAE residents

Plan to slash US credit card interest sparks global debate over debt relief and access

- BY JUSTIN VARGHESE

When US President Donald Trump called for a one-year cap on credit card interest rates at 10 per cent, he reignited a long-running debate about the price of borrowing, the power of banks, and how far governments should go to protect consumers.

The proposal would take effect on January 20, 2026. Trump said lenders charging more than 10 per cent after that date would be “in violation of the law”.

For UAE residents, the plan does not change anything directly. Local banks set interest rates under UAE regulations. Yet the size of the US credit market, the global reach of US financial institutions, and the influence of US policy debates mean the issue carries wider implications.

Effects on banks, card firms