Global Finance Upended by Depth of Tariff Turmoil Few Saw Coming

This is not what global financiers had in mind when they placed their bets on Trump 2.0.

Less than 100 days into the new US administration, bankers from Wall Street to Shanghai’s Pudong and the City of London are bracing for soured loans, canceled deals, forfeited fees — and perhaps threats to their own jobs. Credit markets are paralyzed, while mergers and initial stock offerings are being pulled amid fears of recession.

Every major US bank is down at least 12% this month amid concern about recession and what it might mean for loan losses and trading revenue. In Europe, ...