Jamie Dimon, the CEO of JPMorgan Chase, has voiced serious concerns over former President Donald Trump’s escalating use of tariffs. In his latest letter to shareholders, Dimon warned that the current approach to trade could trigger inflation, slow down global economic progress, and hurt America’s position on the world stage, according to a CNN report.
While he didn’t go as far as forecasting a full-blown recession, Dimon was clear that the mounting tariffs are already having a negative effect.
“The recent wave of tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” he wrote.
A Warning on Global Growth and America’s Global Role
Dimon acknowledged that the outcome of the tariffs remains uncertain.
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he stated.
He went on to argue that America’s global influence is built on more than just economic strength—it also depends on military might and moral leadership. But in his view, that balance is being undermined.
“America First is fine, as long as it doesn’t end up being America alone,” Dimon cautioned.
He expressed worry that weakening ties within Western alliances—both in military and trade—could eventually backfire and diminish America’s own power.
Connecting economic policy directly with global stability, Dimon wrote,
“It is extremely important to recognise that security and economics are interconnected – ‘economic’ warfare has caused military warfare in the past.”
His comments highlight a growing concern among business leaders that isolationist policies could carry long-term geopolitical risks.
Shifting Tone and Mounting Market Uncertainty
While Dimon has previously spoken about global instability—especially in relation to ongoing conflicts in Ukraine and the Middle East—his latest message marks a stronger critique of US domestic strategy.
Earlier in the year, Dimon had taken a more relaxed view on tariffs, even suggesting that if they supported US manufacturing and brought modest inflation, they weren’t a major concern. But now, with Trump’s trade actions expanding, his tone has clearly shifted.
Despite some recent market corrections, Dimon warned that the risks are far from over. “Even with the recent decline in market values, prices remain relatively high,” he noted. The mix of global uncertainty and elevated asset prices, he said, is cause to stay “very cautious.”
He also pointed out that while the US economy had shown resilience, there are early signs of strain. Consumer spending and business activity may be softening, according to CNN.
Dimon ended his letter with a stark reflection on the current state of affairs, “We face the most perilous and complicated geopolitical and economic environment since World War II.”
(With Inputs from ANI)
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