JPMorgan Chase chief executive officer Jamie Dimon said on Monday, April 7, that the tariffs announced last week by United States President Donald Trump are likely to trigger price increases for both domestic and imported goods, which will have a negative impact on the condition of the US economic system, which already demonstrated the slowdown.
The head of the mentioned financial institution, which is the largest in terms of assets in the United States, addressed the trade policy Mr. Trump announced on April 2 in his annual shareholder letter.
In the context of the assumption of rising prices for both domestic and imported goods in the US against the background of new tariffs, Jamie Dimon said that these consequences will be since input costs are growing and demand for domestically manufactured products is also showing an increase.
According to the head of JPMorgan Chase, the likelihood of a recession scenario in the United States economic system due to the current configuration of Washington’s trade policy remains in question. At the same time, he is confident that this factor will slow down the growth of the US gross domestic product (GDP).
Jamie Dimon said that Donald Trump’s tariff policy has generated many uncertainties. In this context, the impact of the mentioned factor on global capital flows, the dollar, and corporate profits was noted. He also mentioned the response of the United States’ trading partners.
According to the head of JPMorgan Chase, the sooner this issue is resolved, the better, as some negative effects will intensify over time and will be hard to reverse. According to him, in the short run, he sees this as one large additional straw on the camel’s back.
The United States economy has performed well in recent years. This was facilitated by $11 trillion in government borrowing and spending. According to Jamie Dimon, the US economy has already started to weaken in recent weeks, even before Donald Trump announced the April tariffs. The head of JPMorgan Chase said that inflation is likely to be stickier than many anticipate, which means that interest rates may remain elevated even with slowing economic growth.
As we have reported earlier, JPMorgan Chase Breaks Its Own Earnings Record.
