Shares in banks and credit card firms have fallen after US President Donald Trump called for credit card costs to be capped.<\/p>\n
On Friday, Trump wrote on Truth Social that interest rates on cards should be limited to 10% for one year from 20 January. <\/p>\n
He did not specify how such a cap might be introduced or whether such a move would be legally enforceable. <\/p>\n
Shares in US credit card firms American Express, Visa and Mastercard fell in early trading, while shares in the UK bank Barclays, which has a sizeable US card business, were down 1.9% at close of trading in London.<\/p>\n
US banking associations say capping rates will make it harder for people to access credit and be “devastating” for millions of families and small businesses.<\/p>\n
The average interest rate for credit cards in the US is roughly 20%.<\/p>\n
In his statement on social media,<\/a> Trump called for limiting it to 10%, reviving an idea he had put forward during his 2024 presidential campaign.<\/p>\n “Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” he wrote. “Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies.”<\/p>\n On Sunday, speaking to reporters on Air Force One, Trump said credit card companies would be “in violation of the law” if they did not comply with his demands.<\/p>\n American Express’s share price initially fell by 4% while Visa and Mastercard’s stock dropped more than 2%. Other US lenders including JPMorgan Chase and Bank of America also saw their shares open more than 1% lower.<\/p>\n Forcing companies to lower their lending rates rate would “upend the basic economics of the industry,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. <\/p>\n “Most banks would respond by cutting credit limits, closing riskier accounts, and scaling back rewards programmes, because they simply couldn’t cover losses at that price point.”<\/p>\n Nearly half of US households in 2022 carried credit card debt, according to the most recent survey of consumer finances by the Federal Reserve. <\/p>\n