Big US bank executives warn of economic turbulence from tariff

The latest warnings add to a chorus of Wall Street executives ringing alarm bells about the potential economic damage from the tariffs

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Executives at big US banks warned on Friday of economic turbulence from tariffs that could weigh on economic growth, even as their profits beat forecasts in the first quarter.

Industry executives said consumers and corporations were becoming more cautious about US President Donald Trump's sweeping tariffs, which have roiled markets, could spur inflation and may tip the economy into recession.

“The first quarter was a pretty good start to the year in terms of trading and even business activity, but what happens in the second quarter is still unknown, including the impact on markets, mergers and acquisitions,” said Brian Mulberry, portfolio manager at Zacks investment Management. “It is going to be a tale of two different quarters.”

While it is too early to understand the full implications of the tariffs, households and businesses were starting to respond to the import levies, executives at the biggest US lenders said.

“You're starting to see maybe a little bit of pivoting from consumers pre-buying stuff that might be getting more expensive,” Jeremy Barnum, JPMorgan’ chief financial officer, told reporters. Corporate clients are in a wait-and-see mode, because “this level of policy uncertainty is one that makes it hard to plan for the long term.”