Affirm Holdings, Inc. (AFRM) saw its stock plummet 9.73% in pre-market trading on Thursday, as the "buy now, pay later" lender faced significant headwinds amid a broader selloff in the fintech sector. The sharp decline comes in response to President Donald Trump's announcement of sweeping tariffs on major trade partners, which has reignited fears of a full-blown trade war and raised concerns about a potential global recession.

The fintech industry, including companies like Affirm, PayPal, SoFi, and Upstart, has been hit particularly hard by these developments. Investors are growing increasingly wary of the sector's prospects in light of renewed inflation worries and expectations of reduced consumer spending. Goldman Sachs analysts have highlighted a "cloudier" macroeconomic picture for fintechs, citing concerns about consumer spending, inflation expectations, and potential negative wealth effects.

As the market reassesses the growth prospects of high-growth fintech companies in this uncertain economic environment, Affirm and its peers may continue to face downward pressure on their stock prices. The company's business model, which relies heavily on consumer loans, could be particularly vulnerable if recession fears materialize and lead to a significant reduction in discretionary spending. With Trump's tariffs potentially exacerbating inflationary pressures and market turmoil, the outlook for Affirm and the broader fintech sector remains challenging in the near term.