Trade agreements

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.

The percentage of farm lenders losing money hit a six-year high in the third quarter, according to the FDIC.

So far farm loans are holding up well, but bankers gathered at an industry conference this week said they are growing increasingly concerned that credit quality will weaken if the U.S. and China don’t reach a deal soon.

In a presentation Thursday, co-COO Gordon Smith expanded on Jamie Dimon's recent comments about frustrations in the mortgage market, was upbeat about branch profitability and discussed some of the bank's Chase Pay challenges.

The California lender, which specializes in trade finance, reported strong growth in commercial and other lending categories last quarter, and it urged the Trump administration to seek fair trade deals with China.

The U.S. will impose further punitive tariffs on imports of softwood lumber from Canada, escalating a longstanding trade dispute that’s already led to higher timber prices.

A new tariff on Canadian lumber threatens to further disrupt homebuilding at a time when lenders are increasingly concerned about a purchase mortgage resurgence that has failed to materialize.