European and US credit card companies are sliding in premarket trading after President Trump said on Truth Social late Friday (read report) that a 10% cap on credit card interest rates is very much on the table as part of his push to improve affordability.

In a Truth Social post, Trump said Americans are being "ripped off" by credit card companies that charge interest rates of 20 to 30% and vowed that his administration will put an end to it.

"AFFORDABILITY! 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%," the president stated. 

The cap's proposed start date coincides with the anniversary of Trump's second-term inauguration and, if implemented, would fulfill his 2024 election campaign pledge.

American Express, Capital One, Visa, Mastercard, JPMorgan, Citi, and Wells Fargo all declined in New York premarket trading, with Capital One and Citi among the hardest hit due to their heavy exposure to credit card lending.

Premarket movers:

• American Express -4.4%,

• Capital One Financial -8.7%,

• Mastercard -2% and Visa -1.6%

Also track:

• Wells Fargo -2.1%,

• JPMorgan Chase -3%,

• Citi -4%

European lenders that offer US credit cards were also declining late in the session:

• Barclays -3.2%,

• Santander -1.6%

• and HSBC -.2%

Goldman analyst Gaelle Jarrousse commented on credit card firms and bank stocks tumbling in the European cash session, as well as the downward pressure on the same types of companies in the U.S. premarket:

Let's start with BARCLAYS down 4-5% at the open on the US CREDIT CARD CAP. Negative headlines post Friday US close from Trump who suggested a cap on credit cards to 10%. However, for this to work, the congress needs to pass a law and we have seen in the past, senators such as Sanders introducing bills proposing a 10% cap but none of them advanced into law. On top of that, banks and credit cards companies have started to lobby and highlighted the contraction of credit card availability that will result from such a measure.

. . .

The US credit cards headline is adding to the pressure we have seen on banks over past few sessions given valuation level (sector on 9.5x 27e) and positioning.

In a separate note, JPMorgan analyst Vivek Juneja warned there will be a "material hit" if this is enacted and "could push consumers into more expensive debt."

Juneja said that while the news will be negative for bank stocks, "this rate cap would not address the root of the problem," which is the rising Fed fund rate.

He said that among the banks in the JPM universe: "Citi has the highest share of credit card loans at 23% of total, followed by JP Morgan (16%), Bank of America (9%), US Bancorp (8%), and Wells Fargo (6%)."

Bloomberg Intelligence analyst Philip Richards pointed out that Trump's demand for lower credit card rates "might not be enforced in full given the strength of US bank lobby groups."

Cowen analyst Moshe Orenbuch said, "This is a resurgence of Trump's campaign promise, and an escalation of the headline risk for credit card issuers."