US banks have flagged concerns over President Donald Trump’s call to sharply cut credit card interest rates, warning that such a move could restrict access to credit and hurt households and small businesses that rely heavily on cards, AFP reported.Trump said on Friday that from January 20, marking the first anniversary of his administration, he wants a 10 per cent cap on credit card interest rates. Posting on Truth Social, he said Americans should no longer be “ripped off” by card issuers charging interest rates of 20–30 per cent.In a joint statement issued late Friday, five major banking industry groups said they shared the president’s goal of making credit more affordable, but cautioned against the proposed cap.“At the same time, evidence shows that a 10 per cent interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards,” the associations said.They added that such a cap, if implemented, could push consumers towards “less regulated, more costly alternatives”.The statement was issued by the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum and the Independent Community Bankers of America.Credit cards remain the primary source of consumer credit in the US, with usage rising sharply in recent years as households lean on borrowing to maintain spending, including for essential expenses. Federal Reserve data shows that total outstanding credit card debt crossed $1.23 trillion by the end of September, making it the fourth-largest category of household debt after mortgages, student loans and auto loans.According to the Fed, credit card interest rates currently stand at 21 per cent or higher and can go up to 38 per cent for borrowers with higher risk profiles. This compares with an average of about 12 per cent a decade ago.With midterm elections due in November, Trump is under pressure to deliver on campaign promises to lower the cost of living amid persistent inflation and growing consumer stress.However, Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, questioned Trump’s intent, noting his administration’s efforts to weaken the Consumer Financial Protection Bureau.“Begging credit card companies to play nice is a joke,” Warren said in a statement. “Trump doesn’t care about affordability.”