“These tariff issues really do have a significant impact on multiple different kinds of financial institutions,” Valladares told Banking Dive. “But the banks that will feel the pinch more immediately are the community banks because they’re the ones that go and lend to the small [and] medium-sized companies in their respective districts. And they’re also the ones that are most affected by the agriculture sector.”

Large national banks will still feel the impact from the tariffs. Bank stocks tumbled Thursday, following Trump’s tweet. But those larger institutions are more adept at managing risks, Valladares said.