New York — President Donald Trump has given the credit card industry a deadline of January 20 to implement his proposal for capping interest rates at 10%. With the date approaching, uncertainty lingers among consumer advocates, political figures, and bankers about the administration’s plans and the seriousness of the president’s demand.

The White House has yet to clarify what potential repercussions credit card companies might face if they do not adhere to the cap. Karoline Leavitt, a spokesperson for the White House, stated that the president expects compliance, although she did not detail any specific consequences. “This is an expectation, and frankly a demand that the president has made,” she said.

Research examining Trump’s proposal indicates that Americans could save around $100 billion annually if interest rates were limited to 10%. While this change would significantly impact the credit card industry’s profitability, analysts suggest companies could still remain viable, albeit with reduced rewards and benefits for consumers. This research has been promoted by the administration on official social media platforms.

Lobbyists for the banking sector have expressed confusion regarding the White House’s intentions. Although various bills aimed at regulating interest rates have been proposed in Congress, leadership from both parties has shown reluctance to advance such measures. The Dodd-Frank Act, enacted post-2008 financial crisis, restricts federal regulators from enforcing usury limits.

Without legislative backing or an executive order, it appears Trump may resort to political leverage to compel compliance from the credit card sector, mirroring his previous tactics with other industries. For instance, he successfully encouraged pharmaceutical companies to pledge price reductions and urged technology firms to increase domestic production.

Wall Street is cautious about entering into direct conflict with the Trump administration, especially given the favorable regulatory environment they have benefitted from thus far. Recent legislative measures, including a substantial tax cut package, have contributed to a flourishing investment banking climate.

Responses from banking representatives reveal a complicated narrative. While expressing opposition to the proposed cap, industry leaders, such as Jamie Dimon’s JPMorgan Chase, have indicated a willingness to collaborate with the administration on feasible solutions. In a recent communication, Dimon’s CFO stated that the industry would utilize its resources to resist significant restrictions but remained open to discussions.

Citigroup’s CFO echoed similar sentiments, arguing that the cap would limit credit availability for consumers and could negatively affect the economy. Nonetheless, he acknowledged that the administration’s focus on affordability is a pressing concern that merits cooperation.

In a strategic move, Trump recently supported a congressional bill that could reduce bank profits from merchant transactions during credit card swipes, further increasing pressure on the industry. Some companies are preemptively adapting to the changing landscape. Financial technology firm Bilt announced it would offer credit cards with an interest rate cap of 10% for new purchases during the first year, positioning itself as proactive in aligning with potential federal expectations.

“If the cap is going to happen, we’d prefer to lead the way,” said Ankur Jain, Bilt’s CEO, indicating that some businesses are eager to find solutions that fit within the proposed framework without significantly disrupting their operations.