New York, Jan 13, 2026, 12:04 PM EST — Regular session
- American Express shares dropped further in midday trading, deepening a policy-driven slump among card companies
- Trump’s plan to cap credit-card interest rates at 10% for one year has stirred up fresh regulatory concerns for lenders
- Investors now eye two key dates: clarity on enforcement measures and American Express earnings due Jan. 30
Shares of American Express (AXP.N) slipped 0.7% to $356.98 by midday Tuesday, pushing their decline further as Washington once again scrutinizes the credit-card sector.
The pressure comes after President Donald Trump proposed a one-year limit on credit-card interest rates at 10%, far below the usual rates in the U.S. Investors are scrambling to figure out how such a cap would impact interest income, along with the associated rewards and fees.
AmEx dropped 3.8% on Monday after Trump said the cap would kick in on Jan. 20, dragging Visa (V.N) and Mastercard (MA.N) down roughly 2%. UBS Global analysts noted, “It would take an Act of Congress for such rate caps to be in place,” while Seaport Research’s Bill Ryan linked Trump’s renewed push to voter concerns about affordability. 1
JPMorgan Chase CFO Jeremy Barnum slammed the proposal as “very bad for consumers, very bad for the economy,” warning it would force banks to slash credit availability. CEO Jamie Dimon added the hit to co-branded cards “would be dramatic.” Overnight, Trump threw his weight behind cutting card swipe fees—the charges merchants pay to process payments—shifting the debate from lending rates to the payments infrastructure. The Federal Reserve put average credit card rates at 20.97% in November. The Electronic Payments Coalition noted that under a 10% cap, most accounts linked to credit scores below 740 would either be shut down or heavily restricted. 2
American Express operates a closed-loop network and issues its own cards, making it vulnerable to both lending economics and transaction fees. While many of its products cater to high-spending customers, it also generates interest income from revolving balances—debt that customers carry month to month.
The missing piece is mechanics. Trump hasn’t explained how lenders would be forced to comply, and that uncertainty has kept the stock moving on headlines instead of fundamentals.
The downside is clear: if the cap gains momentum, issuers might tighten underwriting, shut accounts, and hike prices—actions that would hit card spending and squeeze fee income. On top of that, a tough battle over swipe fees would create another strain, particularly for companies dependent on network revenue.
The debate arrives just as earnings season kicks off, with investors scouring for early signs of credit strain and shifts in reward strategies. For AmEx, keep an eye on comments about spending patterns and delinquencies — that is, late payments — amid the changing policy climate.
American Express plans to release its fourth-quarter results on Jan. 30 at 8:30 a.m. ET. Investors will also keep an eye on Jan. 20, the date Trump mentioned, for any move that might push the proposal into draft legislation or an enforceable rule. 3
