Did Amex stock drop 4.3% after Trump proposed a 10% cap on credit card rates?
Synopsis
In a surprising move, President Trump proposed a 10% cap on credit card interest rates, causing significant drops in the stock prices of major financial institutions, including American Express. This proposal raises concerns about its implications for the credit industry and consumer lending.
Key Takeaways
American Express shares fell by 4.28% .
Trump proposed a 10% cap on credit card interest rates.
Industry experts warn of significant profit losses.
Compliance deadline set for January 20.
Potential impacts on lending for consumers and small businesses.
New Delhi, Jan 13 (NationPress) Shares of prominent US credit card issuers and banks, including American Express, have experienced a significant decline following President Donald Trump's announcement of a proposed cap on credit card interest rates at 10% for one year.
American Express saw a decrease of approximately 4.28%, bringing its share price down to $359, while Capital One plummeted by 6.4%, marking its most considerable drop in nine months. Over the last five days, American Express Co shares have dropped by 5.33%.
Other financial institutions are also affected, with Citigroup falling by 3%, Wells Fargo declining 1%, and Synchrony Financial experiencing a sharp drop of 8.4%.
Experts have cautioned that this cap could potentially erase billions in profits for the industry and restrict lending practices. Even payment processors like Visa and Mastercard, which do not issue credit cards, felt the repercussions due to their reliance on fees collected from consumer transactions.
President Trump has set a compliance deadline for January 20, warning that companies failing to adhere to the 10% rate cap may face severe repercussions.
“I demand a cap on credit card interest rates because some rates are as high as 28% or nearly 30%. Many consumers are unaware they are being charged these exorbitant rates,” Trump stated last week.
“The American workforce is out there, and they are oblivious to the 30% interest they are incurring. We are instituting a one-year cap at 10%, and they will be informed. Credit card companies have really taken advantage of the public, and I will not permit it,” he added.
While industry organizations, including the Bank Policy Institute and the Consumer Bankers Association, support the aim of making credit more affordable, they have voiced concerns that a 10% cap could limit credit availability and negatively affect consumers and small businesses that depend on credit cards, according to numerous reports.
Analysts indicated that enacting this cap would necessitate new legislation from Congress, which seems unlikely given the considerable influence of the banking sector's lobbying efforts.
This announcement by Trump coincides with the lead-up to the US midterm elections, following his remarks to Republican aides about possible impeachment should the Democrats prevail in the November polls.
aar/na
Point of View
It is vital to approach this topic with a balanced perspective. The proposed cap by President Trump poses complex challenges for the financial sector, particularly regarding consumer lending and market stability. While affordability is crucial, the implications of regulatory changes must be thoroughly examined to ensure that both consumers and businesses are not adversely affected.
NationPress
9 May 2026
Frequently Asked Questions
What did Trump propose regarding credit card rates?
President Trump proposed a cap on credit card interest rates at 10% for one year.
How did the stock market react to Trump's announcement?
Stocks of major card issuers, including American Express , fell significantly, with American Express dropping approximately 4.28% .
What are the potential consequences of the proposed cap?
Analysts warn that a 10% cap could lead to billions in lost profits for the industry and restrict lending to consumers and small businesses.
What is the deadline for compliance with the proposed cap?
President Trump has set a compliance deadline of January 20.
Which other companies were affected by this announcement?
Other companies such as Citigroup, Wells Fargo, and Synchrony Financial also experienced stock declines.
