Trump Tariffs: Here's What JPMorgan CEO Jamie Dimon Said About The Impact On Inflation, US Economy

JPMorgan Chase CEO Jamie Dimon thinks President Donald Trump’s tariff war will lead to a surge in inflation, running counter to his economic agenda in the run-up to the presidential elections.

While Dimon was not completely dismissive of Trump’s tariffs, he observed that certain short-term effects would adversely impact the economy and the pocket of the average person in the U.S.

“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,” Dimon said in his annual shareholder letter.

Dimon’s comments come at a crucial time as markets have been plummeting worldwide since Trump’s reciprocal tariff announcement on April 2.

While the S&P 500 is down nearly 18.8% since its February peak, the Nasdaq Composite has entered the bear territory, with a fall of over 23% during the same period.

The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, has fallen nearly 12% since Trump’s April 2 announcement.

Dimon stopped short of predicting a recession but did not rule out the possibility either.

“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he said.

In January, Dimon dismissed tariff concerns in a CNBC interview, saying that national security takes precedence.

“If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it,” Dimon said at the time.

U.S. equities pared some of the losses since opening in the red on Monday morning – while the Dow Jones was down 0.4% at the time of writing, the S&P 500 was in the green, with a gain of 0.1%.

The tech-heavy Nasdaq Composite was up 0.6%.

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Also See: Tariff Wars – Trump Argues US Has Gotten A Lot Stronger But Says He’s Ready To Talk To World Leaders