Bank shares such as Ameris Bancorp inc. (NYSE:ABCB) and BancFirst Corp (NASDAQ:BANF) are trading higher on Wednesday in response to a surprise announcement from President Donald Trump to temporarily pause certain tariffs.
What To Know: The broad-based rally followed Trump's declaration of a 90-day suspension on reciprocal tariffs for countries that have not retaliated against U.S. trade measures. While the pause excludes China — which will now face a 125% tariff on its goods — the shift in policy has eased immediate trade tensions and helped stabilize market sentiment.
A pause in trade escalation reduces uncertainty, which can support business lending, consumer confidence and overall economic activity — all key drivers for banks.
Trump's move was said to be a reward for countries that refrained from retaliating, offering them a temporary 10% tariff and delaying further duties. In contrast, China was singled out as a bad actor, with the president criticizing its trade practices and warning that the U.S. will no longer tolerate the current imbalance.
Treasury Secretary Scott Bessent described the tariff shift as a correction to decades of trade inequities and suggested that the market had previously misunderstood the scope of Trump’s policy. He called the 10% reciprocal tariff a "temporary floor" that adds clarity and leverage to U.S. trade strategy.
Price Action: Ameris shares closed Wednesday up 8.31% to $54.90 and Bancfirst shares were up 6.08% to $108.29, according to Benzinga Pro.
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