J.P. Morgan Chase CEO Has Grim Warning About Trump’s Tariffs | EUROtoday

Jamie Dimon, the CEO of J.P. Morgan Chase, made a grim warning in regards to the impression of President Donald Trump’s tariffs, saying they threaten to drive up costs in an already slowing economic system and do long-term injury to America’s alliances.

In his annual letter to shareholders, the top of Wall Street’s largest financial institution mentioned a recession is a critical chance following the aggressive import taxes Trump slapped on China, the European Union and dozens of different international locations whose merchandise assist hold U.S. client items inexpensive.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon, one of the vital influential figures within the monetary companies house, wrote. “And even with the recent decline in market values, prices remain relatively high. These significant and somewhat unprecedented forces cause us to remain very cautious.”

Trump could have some official causes to impose the tariffs, Dimon continued, however in “the short-term, we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”

The tariffs current potential retaliation from different international locations, wrote Dimon, who mentioned his “most serious concern is how this will affect America’s long-term economic alliances.”

“America First is fine,” wrote Dimon, echoing one in every of Trump’s rallying cries, “as long as it doesn’t end up being America alone.”

These potential impacts on the economic system would additionally drive up rates of interest, he famous.

“All of these cross currents and turbulence may take years to play out,” he mentioned. “It is almost impossible to confidently put them into a quarterly or even annual forecast.”

Dimon’s letter comes a day after billionaire hedge fund supervisor Bill Ackman issued an identical warning in regards to the tariffs Trump introduced final week, writing on social media that it’s akin to launching “economic nuclear war on every country in the world.” If Trump doesn’t pause the deliberate tariffs to permit for some negotiations over them, “we are heading for a self-induced, economic nuclear winter, and we should start hunkering down,” Ackman wrote.

“[W]e are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital,” Ackman added.

Despite shares plunging, Trump has dismissed considerations. When a reporter requested him Sunday evening how a lot he’d let the inventory market endure, he replied: “I think your question is so stupid. I mean, I don’t want anything to go down, but sometimes you have to take medicine to fix something.”

Then, the president added, “I don’t think inflation is going to be a big deal.”