Wells Fargo $(WFC)$ shares plunged 6.21% in intraday trading on Friday, as the banking sector faced a significant selloff following President Donald Trump's announcement of sweeping global tariffs. The sharp decline reflects growing concerns about potential economic slowdown and fears of a looming recession.

The drop in Wells Fargo's stock price is part of a broader trend affecting major financial institutions. Other banking giants such as JPMorgan Chase, Goldman Sachs, and Bank of America also experienced substantial declines. The KBW Nasdaq Bank Index, a key benchmark for the banking sector, had already fallen 9.9% in the previous session, indicating the severity of the market's reaction to recent economic developments.

Investors are particularly worried about the potential ramifications of the new tariffs on the banking industry. Analysts suggest that an economic slowdown could lead to reduced loan demand, increased delinquencies, and a slowdown in merger and acquisition activities, all of which could significantly impact banks' profitability. Additionally, the possibility of stagflation – high inflation combined with low economic growth – has further dampened investor sentiment in the financial sector.

While banks like Wells Fargo 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 confidence. As the market continues to digest the implications of the new tariffs and potential economic headwinds, Wells Fargo and its peers in the banking sector may face continued pressure in the near term.