US big banks fall as US-China escalate trade war

Shares of big U.S. banks fall premarket, paring gains after U.S. President Donald Trump announced a 90-day pause on 'reciprocal tariffs'

Trump also increased tariffs on China to 125% from 104%

Citigroup C.N down 2.6%, Wells Fargo WFC.N and Morgan Stanley MS.N shed 2.2% each

Goldman Sachs GS.N down 1.9%, JPMorgan Chase JPM.N down 1.6%, and Bank of America BAC.N falls 1.4%

Despite the temporary reprieve on Wednesday, fears of a trade war between the two largest economies in the world persist, fueling uncertainty hampering dealmaking and capital markets activity, while lower consumer confidence could curb spending and loan demand

The 10% blanket duty on almost all U.S. imports, including separate duties on autos, steel and aluminum, will remain in effect

The KBW Bank Index .BKX pared losses after the pause was announced, now down 8.2% since Trump's tariff announcement last week; it had fallen as much as 16%

Big banks begin reporting quarterly results this week