WASHINGTON: JPMorgan CEO Jamie Dimon voiced strong concerns over Trump’s growing use of tariffs in global trade policy.
He warned that recent tariffs could boost inflation and increase chances of a worldwide economic downturn.
In his letter to shareholders, Dimon stressed tariffs could reduce growth even if they don’t cause recession.
He noted that the threat of recession remains uncertain, but growth slowdown is already becoming visible.
According to Dimon, inflation may rise due to higher costs passed down to American consumers and businesses.
Global Impact
Dimon said America’s reputation has relied on its economy, military strength, and moral leadership for decades.
He believes Trump’s “America First” approach and rising trade barriers could damage that global position.
If global alliances continue weakening, America’s influence and internal strength could decline over time.
He warned against letting military and economic partnerships dissolve under the pressure of protectionist strategies.
Dimon views these alliances as critical for preserving stability and US power on the global stage.
Market Volatility
He addressed the sharp decline in US markets, which followed historic highs just weeks prior.
Stocks reached a peak on February 19, but quickly fell into bear market territory shortly after.
This rapid shift was the second fastest in US history, only beaten by the 2020 COVID market crash.
Dimon cautioned that stock prices are still too high, despite recent sharp drops.
He believes ongoing uncertainty and global risks justify continued caution and conservative strategies.
Investor Outlook
Dimon emphasized that investors must prepare for potential deeper market corrections in the coming months.
He described the current financial environment as “significant and somewhat unprecedented” in many ways.
Unpredictable policies and trade tension are weighing heavily on investor confidence and long-term economic planning.
He said JPMorgan remains cautious in its outlook, despite current valuations appearing relatively strong.
Dimon urged clients and stakeholders to remain alert to growing global and domestic challenges.
Policy Criticism
Though not directly naming Trump beyond the tariff references, Dimon’s message clearly criticizes administration policy.
He opposed the idea that tariffs alone could strengthen America’s economy or restore global trade fairness.
Instead, Dimon suggests they could isolate the US and reduce its influence over time.
He encouraged long-term thinking over reactive trade battles, especially in an interconnected global economy.
According to Dimon, the best path forward includes collaboration, not unilateral economic moves.
Inflation Threats
Dimon specifically noted inflation pressures rising from tariffs on imported goods, increasing production and retail costs.
He said many businesses are already adjusting prices due to higher material and import costs.
This inflationary pressure, combined with slowing growth, may create more hardship for American consumers.
Dimon said the Fed might need to act sooner than expected to manage these risks.
However, he also hinted that policy tools may have limited effect against unpredictable global trade actions.
Global Reputation
Dimon added that America’s values and partnerships helped build its global influence for many decades.
He sees isolationism and protectionism as threats to those hard-earned relationships and advantages.
Losing alliances could mean less economic cooperation and military coordination in global affairs.
That would reduce America’s leadership role and long-term power, he warned.
The JPMorgan chief urged a return to balanced, responsible leadership in global financial matters.
Preparedness Key
Despite his warnings, Dimon offered reassurance that JPMorgan is prepared for various outcomes.
The company is watching markets closely and updating strategies to handle coming risks.
Dimon ended his letter by calling for calm, responsibility, and long-term planning in economic decisions.
He urged businesses and policymakers to act carefully, considering both present issues and future consequences.
For Dimon, strength lies not in isolation, but in global cooperation and thoughtful, informed economic policy.
