Shares of Bank of New York Mellon (BK) tumbled 7.32% in pre-market trading on Friday, as investors reacted to the bank's first-quarter earnings report and growing concerns about economic turbulence caused by escalating trade tensions.

The steep drop comes as BNY Mellon reported its Q1 2025 results, with CEO Robin Vince warning that tariff-related uncertainty will weigh on markets as global trading terms undergo an upheaval. Vince stated, "It is our expectation that these negotiations are going to take some time and this uncertainty will likely have some length to it." This cautious outlook, combined with broader market concerns about President Trump's recent tariff announcements, appears to have spooked investors.

Despite reporting a jump in earnings for the first quarter due to higher fee revenue and interest income, with a profit of $1.15 billion or $1.58 per share (beating analyst expectations of $1.50 per share), the focus has clearly shifted to future economic challenges. The bank's revenue rose 6% to $4.79 billion, also surpassing analyst projections. However, these positive results were overshadowed by macroeconomic concerns.

The banking sector as a whole is grappling with the potential impacts of President Trump's trade policies, including a 145% tariff on China and separate duties on other countries and industries. JPMorgan Chase CEO Jamie Dimon, whose bank also reports earnings today, recently warned of higher inflation, slower economic growth, and a possible recession due to these trade tensions. The 90-day pause on some tariffs announced by Trump has provided only temporary relief to the markets, as uncertainty about long-term trade policies continues to loom large.