Uber (UBER) shares took a sharp dive in Friday's intraday trading, plummeting 6.30% as investors grappled with the potential fallout from President Trump's newly announced tariffs. The ride-hailing giant's stock decline comes amid broader concerns about the impact of these tariffs on the entire Internet sector.

According to a report from Bank of America, the recently announced tariffs are larger than anticipated and pose "a direct negative" for discretionary retail sales and advertising. More worryingly, the tariffs have fueled fears of a potential recession, which BofA analysts note is "a relative negative for the entire Internet sector." Historical data shows that the sector underperformed during recessionary fears in 2008 and 2022.

For companies like Uber, which rely heavily on consumer discretionary spending and digital advertising, these developments present significant challenges. The potential slowdown in economic activity could lead to reduced demand for ride-hailing services and impact Uber's growth prospects. While BofA analysts point out that the proposed tariff rates could be a negotiation tool and may not be fully implemented, the market's immediate reaction reflects the gravity of these concerns for Uber and its peers in the Internet sector.