Overview
- Trump announced on Truth Social that credit-card rates should be capped at 10% for one year starting Jan. 20 and said noncompliant companies would be breaking the law.
- Shares of American Express, Visa and Mastercard fell in U.S. trading, with declines also hitting European lenders including Barclays, Banco Santander and Société Générale.
- Banking industry groups issued a joint warning that a mandated cap would force tighter credit and could have devastating consequences for households and small businesses.
- Analyst Matt Britzman of Hargreaves Lansdown said a 10% ceiling is roughly half the average U.S. card rate and predicted lower credit limits, closure of riskier accounts and cuts to rewards programs.
- Reports emphasized uncertainty over how the cap could be enacted or enforced, as coverage framed the move as an affordability push ahead of this year’s congressional elections.