Wells Fargo (WFC) stock tumbled 5.15% in pre-market trading on Friday, as part of a broader selloff in the banking sector. The decline comes in the wake of President Donald Trump's announcement of sweeping global tariffs, which has sparked fears of economic slowdown and potential recession.

The banking sector as a whole is facing significant pressure, with major institutions like Deutsche Bank, HSBC, and Barclays all experiencing substantial pre-market drops. Wells Fargo's decline is particularly notable, as it represents a continuation of the negative trend seen in Thursday's trading session when bank stocks were hit hard.

Investors are growing increasingly concerned about the potential economic ramifications of the new tariffs. A slowdown or recession could lead to reduced loan demand and increased delinquencies, directly impacting banks' profitability. Additionally, the uncertainty surrounding trade policy may dampen merger and acquisition activity, further affecting banks' fee-based income.

While Wells Fargo and other major U.S. banks are generally considered to be in better financial shape than they were before the 2008 financial crisis, the current economic uncertainty is weighing heavily on investor sentiment. Analysts will be closely watching the release of the monthly jobs report later today for further indications of the economy's health and potential implications for the banking sector.