What banks need to know about the tariffs: Live coverage

The tariff regime unveiled last week by President Donald Trump has injected a significant dose of uncertainty into the banking industry and unleashed the specter of an economic slowdown.

While banks and credit unions aren't directly affected by the levies being imposed on about 90 countries, bank shares have been pummeled and financial companies are bracing for a global trade war.

Trump's plan was to impose a minimum 10% tariff on goods and services from all U.S. trading partners, with higher rates for nations such as China, Vietnam and Taiwan. In an executive order detailing the plan, the president argued that "large and persistent annual U.S. goods trade deficits have led to the hollowing out" of the nation's manufacturing base and "inhibited [the country's] ability to scale advanced domestic manufacturing capacity," which has "undermined critical supply chains and rendered [the country's] defense-industrial base dependent on foreign adversaries." 

On Wednesday, Trump posted on social media that he would pause the tariffs for most countries for 90 days. He singled out China for an increase, raising the tariff to 125%. "At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," the president said in the post.

The post sparked a rally in the stock and cryptocurrency markets.