President Trump’s plan to cap the credit card interest at 10% for a one-year term has raised fervent discussions among financial industry experts and negatively affected the share price of major U.S. banks and credit card firms.
In his recent statement on social media Truth Social, U.S. President Donald Trump announced that starting on January 20, 2026, he is proposing to introduce a one-year 10% cap on Credit Card Interest Rates.
At present, the average rate cardholders pay on U.S. credit cards is almost 20%, so the proposed cap would effectively halve the credit card companies and banks’ income from customer credit use. According to the U.S. President, these rates are unsustainable for the citizens. Therefore, he added in the abovementioned statement: “Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies.”
The reaction to the statement was immediate and versatile. Thus, top economists rejected the idea on many accounts. For instance, they warned that such a financial course could lead to credit difficulties for borrowers. In case credit card lenders cannot charge rates high enough to cover their own losses and earn attractive returns, they might cancel millions of consumer cards, believe experts. It would force consumers to turn to loan sharks who charge even higher rates and offer no to few protections.
Other critics call the proposed U.S. credit-card interest rate cap “unconstitutional,” since, based on the country’s laws, the national Congress, but not the President, has the power to regulate interstate commerce and set economic rules. Therefore, if such a cap were enacted without a law passed by Congress, critics argue it would violate Article I of the Constitution.
At the same time, the social media announcement is not the official communication, and it has no legal details. It doesn’t specify how exactly the cap would enter into force and whether the U.S. Congress is on board with the decision. It gives room for plenty of speculations that remain ungrounded so far.
While the clarity is yet to be established, U.S. financial entities are already suffering the consequences of the announcement. Shares of major U.S. banks fell in premarket trade on Monday. JPMorgan Chase stock went down 3.2% and Bank of America fell 2.5%. Among the credit card firms, American Express faced a 4% value loss, Visa dropped 1.2% and Mastercard traded 2% lower.
