JPMorgan Chase CEO Jamie Dimon issued a stern warning about the potential consequences of U.S. President Donald Trump's latest tariff policies, warning caution should be exercised as they could raise inflation and increase the likelihood of a global economic slowdown.
In his annual letter to shareholders, Dimon expressed concern about the short-term impact of the tariffs, saying they could dampen U.S. economic growth and spark fears of a recession.
“The latest tariffs will likely increase inflation and make many think the possibility of a recession is greater,” the JPMorgan CEO wrote. “Whether the tariff menu will cause a recession is debatable, but it will slow growth.”
While Dimon acknowledged that some of the motivations behind tariffs may be justified, he urged policymakers to consider their broader implications:
“Whatever you think of the legitimate reasons for the newly announced tariffs or their good or bad long-term effects, they will likely have significant short-term effects. These price increases will not only affect imports but also domestic prices.”
Dimon reaffirmed his general support for Trump’s “America First” agenda, while noting that maintaining global alliances was important:
“If the military and economic alliances of the Western world disintegrate, America itself will inevitably weaken over time. ‘America First’ cannot become ‘America Alone.’”
*This is not investment advice.
