JPMorgan is less certain on the bank sector after the United States lifted tariffs on all imports entering the country. In a Thursday note, JPMorgan analyst Vivek Juneja cut his earnings estimates for U.S. banks, and warned that “there is potential for further cuts,” due to President Donald Trump’s tariff changes Wednesday. While the regulatory environment remains positive under the current administration, easing or lifting those rules will take time to play out, Juneja said. “We expect the tariffs announcement will increase concerns about the impact on the economy and pressure markets overall … Banks would be impacted by these with fallout on investment banking, consumer spending, and loan growth plus wealth management,” he wrote. “Consumer spending started to slow in 1Q, which would impact economic growth, and inflation could rise with tariffs.” Among specific banks, Juneja downgraded his rating of Minneapolis-based regional bank U.S. Bancorp to an underweight opinion from neutral. Juneja’s price target of $43.50, down from $51, implies that the stock will do little in the coming year after closing Wednesday at $43.01. Shares of U.S. Bancorp have slipped 10% this year, but are little changed over the past 12 months, excluding its 4.65% dividend. USB 1Y mountain USB 1Y chart As a catalyst for the downgrade, Juneja said U.S. Bancorp will likely feel a bigger squeeze from the current macroeconomy than its peers. “U.S. Bancorp has a greater share of growth coming from its push into Investment Banking, sizable payments business which will be impacted by slower spending, and sizable credit card loans which have higher loss rates versus peers,” Juneja wrote. “Longer term, this is a good strategy, and USB is undergoing an overdue management change but the outlook would relatively be tempered near term.” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
