JPMorgan CEO Jamie Dimon has issued a blunt warning about President Donald Trump’s tariff policy: It threatens to raise prices, drive the global economy into a downturn and weaken America’s standing in the world.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon warned in his annual letter to shareholders. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
Dimon, one of the world’s most influential business leaders, said America’s “extraordinary standing” in the world was built on the strength of its economy, military and morals. But tariffs and Trump’s “America First” foreign policy could undermine the United States’ special position in the world.
“If the Western world’s military and economic alliances were to fragment, America itself would inevitably weaken over time,” he said.
In past letters, Dimon has warned about geopolitical factors, such as the wars in Ukraine and the Middle East, which he said threatened to send powerful shockwaves throughout the global economy. But rarely has Dimon been so blunt about a single US economic policy.
Dimon has been largely silent about Trump’s tariff policy since he told CNBC in January that, if the president’s tariffs helped boost US manufacturing while causing a little bit of inflation, then people should “get over it.”
But the tariffs Trump has announced are far more severe and widespread than most expected. Dimon is sounding a very different tone now: Brace yourselves.
Despite a recent plunge in markets, stocks could tumble much farther still, Dimon argued. The US stock market is set to open close to bear market territory after hitting a record high less than seven weeks ago, on February 19. It could be the second-fastest peak-to-bear market shift in history (the fastest occurred during the 2020 pandemic).
“Even with the recent decline in market values, prices remain relatively high,” Dimon said. “These significant and somewhat unprecedented forces cause us to remain very cautious.”
This is a developing story and will be updated.
