US banks plummet on market selloff as Trump's tariffs ignite trade war worries

Shares of Wall Street's major banks slide in early hours of trading, as equities set on a correction course

JPMorgan Chase JPM.N, Goldman Sachs GS.N, Morgan Stanley MS.N, Bank of America BAC.N and Citigroup C.N are down; Citi leads the declines with 6.4% fall

S&P 500 Banks .SPXBK index fell 3.4%

U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada takes effect on Tuesday, along with doubling of duties on Chinese goods to 20%

Investors are worried that an increase in surcharges will fan inflation pressures, which may also impact the Federal Reserve's rate cuts in 2025

Wall Street's main indexes fell on Tuesday, with the Nasdaq Composite index dropping more than 10% from its all-time closing high it hit in December