Bank stocks dipped in Wednesday after-hours trading after President Donald Trump announced reciprocal tariffs against other countries that range from 10% to 49%.

While Trump said he expects that the tariffs will increase competition and bring down prices, in the short-term it's expected to increase prices for most imported goods. That could fuel inflation, which could lead the Federal Reserve to raise interest rates. As a result, higher interest rates would constrain M&A activity, as well as debt and equity issuance, services that bring in fees for banks.

JPMorgan Chase (NYSE:JPM) stock fell 2.4%, Goldman Sachs (NYSE:GS) stock slid 2.6%, Morgan Stanley (NYSE:MS) fell 2.7%, Citigroup (NYSE:C) dipped 2.5%, Bank of America (NYSE:BAC) declined 2.3%, and Wells Fargo (NYSE:WFC) wilted 3.6%.

Large, regional bank stocks also shared in the pain. U.S. Bancorp (USB) -2.3%, Truist Financial (TFC) -1.8%, PNC Financial Services (PNC) -1.1%, Flagstar Financial (FLG) -2.0%, and Huntington Bancshares (HBAN) -2.7%.

Consumer finance stocks sank as well. Capital One Financial (COF) -3.3%, American Express (AXP) -2.1%, Synchrony Financial (SYF) -5.5%, Bread Financial Holdings (BFH) -3.1%, and Discover Financial Services (DFS) -4.0%. Auto lender Ally Financial (ALLY) dropped 1.6%.

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