JPMorgan CEO warns Trump’s tariffs risk fuelling inflation, triggering recession in US
New York: JPMorgan Chase CEO Jamie Dimon has warned that US President Donald Trump's tariff strategy could worsen inflation and push the world’s largest economy toward a recession, media reports said.
In his annual letter to shareholders, Dimon said the recent trade measures were already prompting fears of an economic slowdown.
"The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession," he said.
Dimon pointed out that even without a recession, the tariffs could weigh down economic momentum.
“As for 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 product,” he said.
He cautioned that market valuations remain elevated and flagged persistent headwinds.
“These significant and somewhat unprecedented forces cause us to remain very cautious,” he said, highlighting a turbulent mix of geopolitical instability, high fiscal deficits, sticky inflation, and asset volatility.
Dimon also urged the US to extend a more collaborative trade posture toward nations like India and Brazil, especially as Washington lacks trade deals with some of its closest partners.
For India and Brazil, the newly imposed tariffs stand at 26% and 10%, respectively.
Meanwhile, tariffs on Chinese goods have gone up to 84% following retaliatory action from Beijing.
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