In the first quarter, major U.S. banks exceeded profit expectations, attributed to a surge in stock trading. However, there are concerns among executives over the impact of wide-ranging tariffs on economic growth. Despite record revenue from equity traders at JPMorgan Chase and Morgan Stanley, and increased fees from clients at Wells Fargo, worries persist regarding the potential risks posed by President Donald Trump's tariffs causing market disruption, inflation, and possible recession.

Amid tariff uncertainty, attention is drawn to fiscal policy and credit risks, with a close watch on the financial health of consumers and their ability to repay loans. The impact of tariffs has led households and businesses to adjust their behaviors in response to the levies. Corporations are hesitant to commit to long-term planning due to policy uncertainty.

Executives at major U.S. banks anticipate that upcoming corporate earnings reports may lack clear forecasts due to the uncertain tariff environment. Wall Street figures, including JPMorgan CEO Jamie Dimon, BlackRock CEO Larry Fink, and billionaire investor Bill Ackman, have raised concerns over potential economic harm from tariffs. Recent market volatility serves as a reminder that shifting tariff policies continue to pose a threat to both earnings and the wider economy.

Furthermore, clients in the corporate and commercial banking sectors are expressing a need for clarity before proceeding with financial decisions, as stated by Wells Fargo CFO Michael Santomassimo.