US fintechs fall after Trump reveals reciprocal tariffs

Shares of U.S. fintech stocks fall in premarket trading after U.S. President Donald Trump announced tariffs, including on China

Trump said on Wednesday he would impose a 10% baseline tariff on all imports to the U.S. and higher reciprocal duties on some of the country's biggest trading partners

Affirm AFRM.O and Pagaya Technologies PGY.O fall 9%; LendingClub LC.N down 7.6% and Upstart Holdings UPST.O down 10%

PayPal PYPL.O falls 4.4% and Block XYZ.N down 5.3%,

Fintechs could struggle if potential inflationary pressures from tariffs weigh on consumer spending. Market turmoil amid economic uncertainty could further dampen sentiment

"Consumer spending started to slow in 1Q, which would impact economic growth, and inflation could rise with tariffs," say J.P. Morgan analysts in a note

Goldman Sachs says the consumer spending outlook appears worse; flags higher inflation, rate cuts seemingly on pause, and potential negative wealth effects