HSBC issues a warning! Trump's global tariff storm is about to unfold, launching a $3 billion stock buyback plan.

HSBC has issued a warning that the global trade war triggered by U.S. President Trump will have broader impacts, particularly directly affecting loan and credit quality. This means that HSBC, whose main business is serving corporate clients, will face more challenging times.

HSBC Holdings ( is the largest bank in Europe, now resetting its targets and announcing a new $3 billion share buyback plan )Shares Buyback(. The first quarter financial report revealed a pre-tax profit of $9.5 billion, mainly attributed to one-time costs related to the divestiture of businesses in Canada and Argentina. Analysts had previously estimated that the pre-tax profit for this largest bank in Europe by asset size would reach $7.8 billion, and the bank's first-quarter profit exceeded analysts' expectations. On April 29, HSBC's stock price in Hong Kong rose about 3.2%, while the Hang Seng Index remained flat, and the London Stock Exchange price rose about 2.1%. Even with strong financial results and stock performance, HSBC's CEO has made an early pessimistic forecast regarding future market volatility.

HSBC stated that if the economy slows down, it will suppress loan demand.

HSBC is one of the largest trade finance banks in the world. They have publicly issued the clearest warning to the public regarding what large banks can do after the announcement of tariff policies. The global ripple effects caused by Trump's tariff policies may suppress loan demand and trigger market sentiment, harming the interests of lending institutions.

HSBC CEO Georges Elhedery stated during a conference call with reporters that the bank has examined all sources of income as well as its credit portfolio to assess the various impacts brought by tariffs. The analysis results show that the impact on the bank's income is limited; however, the impact on credit is profound. If the economy slows down, an additional loss of about $500 million is expected. The currently disclosed bank report indicates that credit losses for this quarter are projected to be $900 million, of which $150 million reflects the uncertainty of the future economy.

Georges Elhedery stated that the impact on business clients in the United States and China is particularly severe. HSBC found that in areas where tariff exemptions or reductions were not granted, the trade volume in the US-China trade corridor has significantly decreased. If the economy slows down, HSBC may additionally set aside $500 million in credit losses.

Goldman Sachs CEO expects the market to be filled with emotional volatility.

HSBC is not the only financial institution that feels uneasy about Trump's tariff policy. Since the announcement of the tariff policy earlier this month, Goldman Sachs )Goldman Sachs NYSE ticker GS.N( has seen its stock price drop by about 12%. Goldman Sachs CEO David Solomon stated that the ongoing uncertainty of the tariff policy and market volatility have prompted clients to rethink their investment allocations, leading to a surge in trading activity. This shift highlights the sentiment in the industry regarding tariffs, and the financial market environment is clearly different from before. Just a few months ago, the banking sector was still celebrating Trump's return to the White House.

Senior executives from major U.S. banks stated at a recent earnings conference that the economy will face turbulence following Trump's announcement of large-scale tariff sanctions on April 2. HSBC fired the first shot, directly warning that Trump's U.S.-China trade war could disrupt global financial markets, raising concerns about a sharp economic downturn in various regions.

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