Tariffs in Banking

Tariffs are influencing the banking sector as bankers navigate today's economic volatility. Tariffs are introducing complexities that impact lending, investment strategies, and overall financial stability across areas of the financial world. As a banker, it is essential that you understand the many ways that tariffs could impact your organization, including escalating trade tensions and shifting regulatory landscapes. Explore our comprehensive coverage, including news, expert analysis, videos, webinars, and market research to stay up-to-date in real-time on the latest tariffs news and insights for financial professionals.

Commercial banking

Bankers say tariff uncertainty is the new normal

Following a major Supreme Court ruling on tariffs, which drew a quick response from President Trump, banks and their commercial clients are expecting trade issues to remain in flux for the foreseeable future.

By Catherine Leffert
Reporter

March 3
Commercial banking

Small businesses grow less hopeful for future: Fed study

Key measurements of small businesses' health remained stable in 2025, according to a new study by the 12 regional Federal Reserve banks. But those firms' optimism about the future reached its lowest point since 2020.

By Nathan Place
National Reporter

March 3
Small business lending

How fintech SMB lenders are responding to tariff changes

Fintech lenders are positioned to help businesses navigate the latest round of global tariffs announced by President Trump, even as the volatility causes overall decreases in loans.

By Melinda Huspen
Tech Reporter

March 2
Earnings

RBC raises provisions again amid renewed tariff uncertainty

The Royal Bank of Canada's base outlook is that tariffs will remain at their current levels. But it also sees a possibility that U.S. trade policy will bring on a severe North American recession.

By Nathan Place
National Reporter

February 26
Politics and policy

Trump boosts new tariff rate to 15% a day after announcing 10%

President rushes to preserve tariff agenda following Supreme Court ruling against his use of an emergency-powers law.

February 21
Litigation

Bessent: 'No one should expect' tariff revenue to decline

Treasury Secretary Scott Bessent said in a public appearance in Dallas Friday that the administration will seek alternative means of enacting the White House's tariff agenda after the Supreme Court struck down the tariffs as outside the bounds of the law.

By Ebrima Santos Sanneh
Reporter

February 20
Trump administration

Supreme Court strikes down Trump's 'Liberation Day' tariffs

The Supreme Court Friday issued a 6-3 ruling that held that a law granting the White House economic emergency powers does not include the power to tax imports.

By Ebrima Santos Sanneh
Reporter

February 20

Frequently Asked Questions:

What proactive measures are banks using to mitigate the impact of tariffs?

Trade finance services and corporate client advisory on supply chain adjustments allow banks to lessen the impact of tariffs. For example, Citizens Financial’s trade finance unit helped companies accelerate inventory purchases and use letters of credit to secure transactions ahead of new duties. Many banks are also using hedging strategies and leveraging deregulation windfalls to address higher costs.

How should banks recalibrate interest rate forecasting and monetary policy expectations amid tariff-induced economic disruptions?

Banks can incorporate tariff-driven inflation and growth scenarios into their interest rate models and maintain flexibility in policy outlooks. Institutions are closely tracking Federal Reserve signals in this volatile trade environment, as tariffs can both slow growth and raise prices. This can put the Fed “in a quandary,” requiring banks to update their asset-liability strategies to account for potential rate cuts or even hikes.

What advanced compliance and technology strategies are banks using to optimize cross-border payments and trade finance?

Banks are deploying sophisticated payment analytics and real-time treasury tools to manage cross-border flows amid shifting tariffs. BNY Mellon, for example, notes clients are using predictive cash-flow analytics to navigate uncertainty. Institutions can also improve compliance automation by integrating systems for instant sanctions/tariff list updates. This can ensure cross-border transactions meet changing trade rules.

What are best practices in risk modeling and scenario analysis for banks to navigate tariff-related risks?

Leading banks can look to bolster scenario analysis capabilities to account for tariff shocks. Banks can run stress tests on portfolios with heavy exposure to tariff-impacted sectors such as automotive manufacturing and agriculture as well as model multiple trade war outcomes. Analysts also advise enhancing “playbooks” for varied economic scenarios and properly pricing new loans for added risk. For example, this could mean using forward-looking models to adjust credit loss provisions and capital plans.

How can banks prepare for long-term industry trends driven by tariffs and trade uncertainty?

Banks can prepare through incorporating trade policy shifts into growth investments as well as technology investments. This includes diversifying supply chain financing, investing in local manufacturing projects, and strengthening presence in resilient markets. Industry leaders like JPMorgan’s Jamie Dimon are watching the “restructuring of trade and tariffs” as an inflationary force shaping future strategy.

Which banking operational units should banks prioritize for tariff exposure assessments?

Commercial lending divisions, including those that finance manufacturers, agriculture, and exporters are a priority. These units will most directly face clients impacted by tariffs. Other units to review exposure risks include specialized trade finance and supply chain finance.

How is artificial intelligence (AI) helping banks address tariff-related challenges?

AI enables banks to respond faster and more efficiently to tariffs. Machine learning models can recalibrate pricing and supply chain finance strategies as trade policies shift. Generative AI tools can shorten the time needed to update payment systems for new tariff rules update payment systems for new tariff rules. AI-enabled platforms can make compliance a proactive function by automating real-time screening of transactions against changing trade restrictions.