TLDR
- JPMorgan CEO Jamie Dimon warns Trump’s tariffs could increase inflation and recession probability
- Tariffs will likely raise prices on both imported and domestic goods
- Global markets including crypto have fallen since Trump’s tariff announcement
- Bitcoin dropped below $79,000 to its lowest point since November
- Dimon cautions that “America First” shouldn’t become “America alone”
Jamie Dimon, the CEO of JPMorgan Chase, has issued a warning about the potential economic consequences of President Donald Trump’s recent tariff policy. In his annual letter to shareholders on Monday, April 7, 2025, Dimon expressed concern that the new tariffs could drive up inflation and increase the chances of a U.S. recession.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon stated in his letter. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
The 69-year-old banking executive pointed out that these tariffs will affect prices beyond just imported goods. Domestic prices are also expected to rise as input costs increase and demand shifts toward domestic products.
Dimon’s comments come at a time of market turmoil. Global markets have been falling since Trump announced his new tariff policy on April 2, 2025. This resulted in the worst week for U.S. equities since the COVID-19 pandemic began in 2020.
Market Impact Already Visible
The effects are already being felt in financial markets, including cryptocurrencies. Bitcoin fell below $79,000, reaching its lowest point since November. At the time of reporting, it was trading at $78,235, flat over the past 24 hours.
The broader crypto market has also been affected. The CoinDesk 20, which tracks the 20 largest crypto assets by market capitalization, dropped more than 10% and is down nearly 20% over the past month.
These market reactions suggest investors are concerned about the economic implications of the tariff policy. The uncertainty has created volatility across various asset classes.
Dimon acknowledged that there may be legitimate reasons for the tariffs. However, he emphasized that regardless of long-term effects, the short-term impact on the economy could be substantial.
Economic Outlook Concerns
The JPMorgan CEO noted that the U.S. economy was “already weakening” in recent weeks, even before Trump’s tariff announcement. He suggested that inflation might be more persistent than many anticipate, potentially keeping interest rates elevated even as economic growth slows.
“The economy is facing considerable turbulence, with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” Dimon explained.
Dimon is the first CEO of a major Wall Street bank to publicly address Trump’s sweeping tariff policy as markets tumble. His comments appear to backtrack from remarks he made in January, when he suggested people should “get over” tariff concerns because they were good for national security.
The difference may be in the scale of the tariffs. Dimon noted that the tariff levels being discussed in January were far lower than what was unveiled last week.
International Relations Warning
While Dimon expressed for Trump’s “America First” approach to foreign policy, he cautioned that it shouldn’t evolve into “America alone.”
“If the Western world’s military and economic alliances were to fragment, America itself would inevitably weaken over time,” he warned in his letter.
Dimon argued for strengthening the global system that has led to decades of peace and prosperity under American leadership since World War II, rather than abandoning it.
“In the multipolar world that follows, it will be every nation for itself – giving our adversaries the opportunity to set the rules and use military and economic coercion to get what they want,” he wrote.
The banking executive stressed that maintaining strong international partnerships remains crucial. “Economics is the longtime glue, and America First is fine,” Dimon said, “as long as it doesn’t end up being America alone.”
Dimon urged quick resolution of the tariff issues, noting that “some of the negative effects increase cumulatively over time and would be hard to reverse.” He described the situation as “one large additional straw on the camel’s back.”
According to Dimon, Trump’s tariff policy has created “many uncertainties,” including its effect on global capital flows, the dollar, corporate profits, and the response from trading partners.
Despite the current challenges, Dimon offered several prescriptions to address the issues, including restoring civic pride and maintaining the U.S. military “at whatever cost.”
