Klarna CEO Supports Trump’s 10% Rate Cap, Describes Credit Cards as ‘Extraction Machines’
Klarna CEO Sebastian Siemiatkowski explains why he supports President Donald Trump’s push to cap credit card interest rates at 10% on ‘The Claman Countdown.’
Klarna CEO Sebastian Siemiatkowski recently voiced his support for President Donald Trump’s initiative to impose a 10% cap on credit card interest rates. This statement came during an interview on “The Claman Countdown” on Monday, amidst significant pushback from the banking sector.
Siemiatkowski described revolving credit card interest as an “extraction machine,” emphasizing that he believes President Trump is “super wise” for challenging the banks on behalf of American consumers. He stated, “I think that President Trump is super wise and willing to take on the banks on behalf of the U.S. consumers.”
Trump’s proposal for a 10% cap on credit card interest rates has set a deadline for credit card companies to respond by Tuesday.
THIS BLACK FRIDAY, DON’T LET ‘SWIPEFLATION’ SWIPE $1,400 OF YOUR HOLIDAY CASH
President Donald Trump takes questions from members of the press aboard Air Force One on Jan. 11, 2026, en route back to the White House from Palm Beach, Florida. (Samuel Corum / Getty Images)
During the interview, FOX Business host Liz Claman pointed out that implementing a federal cap would likely necessitate Congress to pass legislation for it to be enforceable. However, Siemiatkowski contended that American consumers are increasingly frustrated with the credit industry’s “unfair” practices.
“They are tired of these tricks that the credit cards have been pulling on them, and they are looking for healthier alternatives,” Siemiatkowski remarked. He criticized the credit industry’s “broken system,” which he claims has led to overbearing costs for consumers.
He highlighted that last year alone, American consumers incurred $160 billion in interest charges, with 31 billion Americans paying these fees. “That isn’t a financial service industry. It is an extraction machine,” he stated, emphasizing that such high interest rates are unnecessary.
ELIZABETH WARREN SAYS TRUMP CALLED HER AFTER SPEECH CRITICIZING HIS RECORD ON COSTS
Visa and Mastercard stocks were hammered after the president’s announcement. (FREDERIC J. BROWN/AFP via Getty Images)
Siemiatkowski’s views contrast sharply with those of major credit card issuers, who argue that interest rate caps could limit access to credit, particularly for lower-income borrowers. Many predict that such a cap would restrict credit availability for these consumers. However, Siemiatkowski countered that these fears are unfounded, citing examples from European markets where interest rate caps have not led to the dire consequences predicted by banks.
“In some European markets, there are interest rate caps,” he explained. “It has not led to these consequences that the banks are now trying to scaremonger with.”
He further argued that high credit card fees ultimately inflate prices for all consumers, even those who pay in cash. “Because merchant fees and credit card fees are so high, grocers and retailers have to charge higher fees on average, even for people paying cash,” Siemiatkowski noted.
Sebastian Siemiatkowski, chief executive officer and co-founder of Klarna Holding AB, speaks during an interview at the New York Stock Exchange on Wednesday, Sept. 10, 2025. (Michael Nagle/Bloomberg via Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Siemiatkowski concluded by asserting that the proposed tighter regulations could help restore balance in the credit industry. “Reining things in with requirements like this can be healthy for an industry that’s lost its direction,” he said.
Klarna CEO Sebastian Siemiatkowski explains why he supports President Donald Trump’s push to cap credit card interest rates at 10% on ‘The Claman Countdown.’
Klarna CEO Sebastian Siemiatkowski recently voiced his support for President Donald Trump’s initiative to impose a 10% cap on credit card interest rates. This statement came during an interview on “The Claman Countdown” on Monday, amidst significant pushback from the banking sector.
Siemiatkowski described revolving credit card interest as an “extraction machine,” emphasizing that he believes President Trump is “super wise” for challenging the banks on behalf of American consumers. He stated, “I think that President Trump is super wise and willing to take on the banks on behalf of the U.S. consumers.”
Trump’s proposal for a 10% cap on credit card interest rates has set a deadline for credit card companies to respond by Tuesday.
THIS BLACK FRIDAY, DON’T LET ‘SWIPEFLATION’ SWIPE $1,400 OF YOUR HOLIDAY CASH
President Donald Trump takes questions from members of the press aboard Air Force One on Jan. 11, 2026, en route back to the White House from Palm Beach, Florida. (Samuel Corum / Getty Images)
During the interview, FOX Business host Liz Claman pointed out that implementing a federal cap would likely necessitate Congress to pass legislation for it to be enforceable. However, Siemiatkowski contended that American consumers are increasingly frustrated with the credit industry’s “unfair” practices.
“They are tired of these tricks that the credit cards have been pulling on them, and they are looking for healthier alternatives,” Siemiatkowski remarked. He criticized the credit industry’s “broken system,” which he claims has led to overbearing costs for consumers.
He highlighted that last year alone, American consumers incurred $160 billion in interest charges, with 31 billion Americans paying these fees. “That isn’t a financial service industry. It is an extraction machine,” he stated, emphasizing that such high interest rates are unnecessary.
ELIZABETH WARREN SAYS TRUMP CALLED HER AFTER SPEECH CRITICIZING HIS RECORD ON COSTS
Visa and Mastercard stocks were hammered after the president’s announcement. (FREDERIC J. BROWN/AFP via Getty Images)
Siemiatkowski’s views contrast sharply with those of major credit card issuers, who argue that interest rate caps could limit access to credit, particularly for lower-income borrowers. Many predict that such a cap would restrict credit availability for these consumers. However, Siemiatkowski countered that these fears are unfounded, citing examples from European markets where interest rate caps have not led to the dire consequences predicted by banks.
“In some European markets, there are interest rate caps,” he explained. “It has not led to these consequences that the banks are now trying to scaremonger with.”
He further argued that high credit card fees ultimately inflate prices for all consumers, even those who pay in cash. “Because merchant fees and credit card fees are so high, grocers and retailers have to charge higher fees on average, even for people paying cash,” Siemiatkowski noted.
Sebastian Siemiatkowski, chief executive officer and co-founder of Klarna Holding AB, speaks during an interview at the New York Stock Exchange on Wednesday, Sept. 10, 2025. (Michael Nagle/Bloomberg via Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Siemiatkowski concluded by asserting that the proposed tighter regulations could help restore balance in the credit industry. “Reining things in with requirements like this can be healthy for an industry that’s lost its direction,” he said.
