The Lloyds (LSE:LLOY) share price fell 5.5% on 4 April 2025, extending losses triggered by former President Donald Trump’s announcement of a 10% tariff on UK imports. This decline reflects broader market jitters, with the FTSE 100 down 1% and European indexes faring worse. For Lloyds, the sell-off underscores concerns about macroeconomic challenges and their impact on bank profitability.

Tariff turbulence

Trump’s tariffs have intensified fears of a US recession, with Barclays analysts assigning a ‘high risk’ designation. For Lloyds, the immediate threat lies in dampened global trade activity and potential retaliatory measures, which could strain UK economic growth.

While…