Former President Donald Trump announced on social media plans for a significant change to credit card interest rates. He stated that, effective January 20, 2026, he intends to impose a one-year cap on credit card interest rates set at 10%. Trump emphasized his commitment to protecting consumers from what he referred to as exploitation by credit card companies.
Impact on Bank Shares
The response from the banking sector was immediate and negative. Shares in major U.S. banks dropped during premarket trading on Monday:
- JPMorgan Chase: down 3.2%
- Bank of America: down 2.5%
In the credit card industry, major firms also saw declines:
- American Express: down 4%
- Visa: down 1.2%
- Mastercard: down 2%
Legislative Challenges
Despite Trump’s bold announcement, implementing such a cap would require legislative action. Lawmakers have indicated that a bill must pass through Congress for this cap to take effect. Senator Elizabeth Warren voiced skepticism regarding Trump’s initiative, suggesting that merely asking credit card companies to cooperate is ineffective. She noted her willingness to support legislative efforts to cap rates, but criticized Trump for failing to act since raising the issue a year ago.
Previous Legislative Efforts
In the past, bipartisan efforts were made to regulate interest rates on credit cards. In early 2022, Senators Bernie Sanders and Josh Hawley introduced legislation to cap interest rates at 10% for a period of five years. However, this proposal has not yet advanced into law.
Regulatory Background
Further complicating the landscape, in April 2025, the Trump administration attempted to eliminate a regulation established during President Joe Biden’s term. This regulation aimed to limit credit card late fees to $8 as part of a broader initiative to eliminate excessive fees, commonly referred to as “junk fees.” The outcome of these regulatory changes will likely affect both consumers and credit corporations in the coming years.
