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.

Practice and client management

We've been here before: Advisors share lessons from past financial crises

Veterans of the dot-com bubble of the late '90s, the early 2000s recession, the 2008 financial crisis and COVID-19 shutdown of 2020 say the more things change, the more things stay the same.

By Rob Burgess

April 7
Trump administration

What Trump's tariffs mean for banks

From reduced demand for auto loans to a slowdown in mergers and acquisitions, here's some of the new trade war's potential fallout for lenders.

By Allissa Kline

April 7
JPMorgan Chase

Four of Jamie Dimon's biggest concerns, per his letter

JPMorgan Chase's CEO emphasized his concerns about geopolitical conflict and brought up recent culture shifts at the bank in his annual letter to shareholders.

By Catherine Leffert

April 7
JPMorgan Chase

Jamie Dimon: Tariff policy issues must be resolved quickly

"The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse," the JPMorgan Chase & Co. CEO wrote in his annual letter to shareholders.

By Hannah Levitt

April 7
Bank stocks

'Complete whiplash': Bank stocks fall after recent euphoria

Wall Street continued its sell-off of financial institutions as the increasing likelihood of a U.S. recession fuels fears of revenue pressures.

By Catherine Leffert

April 4
Politics and policy

Tariffs add pressure on already stressed auto loans

President Trump's tariffs on imported vehicles threaten to drive up auto prices at a time when more car owners are already drifting into delinquency on their loans.

By Nathan Place

April 3
Tax

Tariffs put Fed in tough spot

An aggressive suite of tariffs from President Trump will complicate the Federal Reserve's job as it struggles to quash inflation and avoid an economic downturn.

By Jonnelle Marte, Maria Eloisa Capurro and Amara Omeokwe

April 3

Banks on deck for quarterly earnings amid tariffs mayhem: Live coverage

The first three months of the year coincide with the start of President Donald Trump's second term in office. Investors are likely to be more interested in banks' outlooks amid swings in tariff policy than the first-quarter results.

Live Updates

Multimedia

Resources

The latest American Banker research and discussion on Tariffs

Bessent emerges as contender to succeed Powell as Fed chair

By Saleha Mohsin, Nancy Cook and Joshua Green

June 11
Becca Baaske

June 11
Community Banks with the Largest First Mortgage Portfolios

Data as of Mar. 31, 2025. Dollars in thousands.

Sponsored by S&P Global

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.