JPMorgan’s Jamie Dimon told shareholders Trump’s tariffs threaten to raise prices, drive the global economy into a downturn and weaken America’s standing in the world. He also says they are likely to increase the probability of a recession and will at least slow growth. Via CNN:
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. “America First is fine, as long as it doesn’t end up being America alone,” Dimon said. “If the Western world’s military and economic alliances were to fragment, America itself would inevitably weaken over time,” he said.
Dimon also pointed out that these forces are inextricably linked. “It is extremely important to recognize that security and economics are interconnected – “economic” warfare has caused military warfare in the past,” he wrote.
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.” In his letter on Monday, Dimon acknowledged that “damaging trade practices,” especially from China, have hurt workers.
