Many of the  in the U.S. are getting hammered today, as economic concerns over President Donald Trump's tariffs and economic growth continue to impact the broader market.

Shares of JPMorgan Chase (NYSE: JPM) dropped nearly 5% as of 10:52 a.m. ET, while shares of Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C) were down 6.5% and 7.5%, respectively.

### First-quarter GDP estimates crater

By now, investors know that market conditions under Trump can change at lightning speed. Weakening consumer sentiment and a ratcheted-up trade war in recent weeks have resulted in a marketwide sell-off that has only accelerated.

The latest sign of weak economic growth came from the Federal Reserve Bank of Atlanta. Yesterday, the bank's GDPNow model projected first-quarter gross domestic product (GDP) to decline 2.8%. A week ago, GDPNow called for 2.3% growth, and a month ago, the model projected 4% growth. These are some of the fastest downward revisions since the pandemic.

One of the culprits behind the big move could be the Trump administration's tariffs, which have gone from a negotiating tactic into a full-blown trade war. Twenty-five percent tariffs on Mexico and Canada went into effect today, along with increased tariffs on goods from China. Retaliatory tariffs are expected to follow.

Tariffs serve as a tax on foreign imports and are meant to make American businesses more competitive. However, they may also lead to higher consumer prices and can harm economic growth. The Brookings Institute last month estimated that the 25% tariffs on Canada and Mexico, as well as retaliatory tariffs by each country, could lower real GDP growth by $75 billion in the U.S. Banks are cyclical, so they tend to be impacted by the economy and consumer sentiment, which makes up over two-thirds of GDP.

### Uncertainty at an all-time high

Heading into the year, I really liked the setup for bank stocks due to deregulation and a steepening yield curve in which shorter-duration Treasury notes yield less than longer-dated ones. However, banks are certainly not immune to a recession and large banks had been on a nice run. I'm still optimistic long term on the outlook for bank stocks, but there may be more opportunity right now in the small- and mid-cap space where merger and acquisition activity could heat up later this year.

_Jetco is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money._

_Citigroup is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money._

_Bruce Berkowitz, The Motley Fool, has no position in any of the stocks mentioned. 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