Jamie Dimon: Trump's tariffs will drive inflation in US

Jamie Dimon warned that the tariffs imposed by President Donald Trump will lead to higher prices for both domestic and imported goods in the US, further burdening the world’s largest economy, which is already facing a slowdown.

In his annual letter to shareholders, the CEO of JPMorgan Chase said that the protectionist trade policy will have inflationary effects, not only on imported goods but also on domestic prices, due to rising input costs and increased demand.

He added that it remains uncertain whether the higher tariffs will trigger a recession, but they will slow the pace of growth. Dimon also noted that Trump’s policies have raised significant doubts about their effectiveness, according to CNBC.

Dimon further stated that this policy is affecting global capital flows and the dollar, as well as damaging corporate profits and eroding confidence among trade partners.

At 69, Dimon believes the US economy is facing significant disruptions. While the positive effects of tax cuts that Trump plans to implement are evident, the tariffs and ongoing trade tensions threaten U.S. growth.

Dimon’s remarks mark a significant shift from his view in January, when he suggested that Americans should move past concerns about high tariffs, highlighting their potential positive impact on national security.