Jamie Dimon, the CEO of JPMorgan Chase & Co., spoke at the 2025 National Retirement Summit in Washington, D.C., on March 12, 2025.
Al Drago | Bloomberg | Getty Images
JPMorgan Chase CEO Jamie Dimon stated on Monday that the tariffs introduced by President Donald Trump last week are likely to increase prices on both domestic and imported goods, which could further burden an already slowing U.S. economy.
In his annual shareholder letter, which offers insights into economic conditions, management practices, and proposals for U.S. challenges, Dimon, 69, addressed the tariff policy announced by Trump on April 2.
“Regardless of your views on the legitimate reasons behind the new tariffs – and there are कुछ – or their potential long-term effects, positive or negative, we can expect significant short-term impacts,” Dimon noted. “We are likely to experience inflationary pressures, not just on imported goods but also on domestic prices as input costs rise and demand for domestic products increases.”
“While it’s uncertain whether the tariffs will lead to a recession, growth is expected to slow,” he added.
Dimon has become the first CEO of a major Wall Street bank to openly discuss Trump’s extensive tariff policy amidst a market downturn. He has frequently used his platform to point out geopolitical and financial risks, but this year’s commentary comes during an unusually volatile period. Following Trump’s announcement, U.S. stocks experienced a severe decline, marking the most challenging week for equities since the onset of the Covid pandemic in 2020.
His statements seem to contradict previous remarks he made in January, when he suggested that concerns over tariffs should be put aside as they were beneficial for national security. The tariff levels discussed at that time were considerably lower than those revealed last week.
According to Dimon, Trump’s tariff policy has introduced “numerous uncertainties,” which include effects on global capital flows, the strength of the dollar, implications for corporate profits, and the reactions from trading partners.
“Resolving this issue swiftly is crucial because some adverse effects tend to accumulate over time, making them challenging to reverse,” he emphasized. “In the short term, I view this as just one more significant burden on the economy.”
‘Not so sure’
Although the U.S. economy has shown strong performance in recent years, bolstered by nearly $11 trillion in government borrowing and spending, Dimon noted that it was “already weakening” in the weeks leading up to Trump’s tariff announcement. He also suggested that inflation may remain more persistent than many anticipate, potentially keeping interest rates high even as economic growth slows.
“The economy is currently undergoing significant turbulence (including geopolitical factors), with the promising aspects of tax reform and deregulation on one hand and the negative aspects of tariffs and ‘trade wars,’ persistent inflation, substantial fiscal deficits, and elevated asset prices and volatility on the other,” Dimon remarked.
Dimon also conveyed a somewhat unsettling message regarding the decline in U.S. stock values from their recent peaks. He mentioned that both stock and credit spreads might still be overly optimistic.
“Markets appear to be pricing in assets with the belief that we will achieve a relatively soft landing,” Dimon expressed. “I have my doubts.”
This story is ongoing. Please return for updates.
