As the trade war continues to create uncertainty for the financial sector, major U.S. banks, including JPMorgan, Wells Fargo, and Morgan Stanley, are set to report lower than expected quarterly earnings due to ongoing tariff chaos. Analysts suggest that recession fears may overshadow these earnings reports, raising concerns about financial strain within the banking sector. Regional banks are also grappling with the impacts of tariffs, which are disrupting deals and leading to a pause in growth. The prevailing sentiment points towards a challenging environment for banks as they navigate a heavily clouded economic outlook influenced by trade tensions and potential loan losses.