US fintechs fall after Trump reveals reciprocal tariffs

Pagaya Technologies

03/04/2025 12:53

** 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

(Reporting by Ateev Bhandari in Bengaluru)

((Ateev.Bhandari@thomsonreuters.com; ))