Although he stopped predicting a complete recession, he acknowledged that tariffs could hurt economic momentum.
JPMorgan CEO Jamie Dimon issued a clear warning about the risks posed by US President Donald Trump’s tariff strategy, warning that escalating trade measures could exacerbate inflation, global growth and damage U.S. strategic position, CNN reported.
In an annual letter to shareholders, Dimon said the recent wave of tariffs “could increase inflation and cause many to consider a greater possibility of a recession.” Although he stopped predicting a complete recession, he acknowledged that tariffs could hurt economic momentum.
“There is still a problem whether the tariff menu causes a recession, but it will slow growth,” he wrote.
Dimon stressed that the U.S. power on the world stage relies on the combination of economic vitality, military strength and moral leadership. He warned that the foundation is now threatened by Trump’s trade policy and a broader “America First” foreign policy approach.
“As long as the United States is not ultimately alone, the United States will do it,” said Dimon, warning that the division of the Western Union – the military and the economic – will eventually weaken the United States itself.
“It is very important to recognize that security and economics are interconnected – the ‘economics’ have caused military wars in the past.”
CNN reported that his remarks suggest that economic segregation cannot be viewed separately from geopolitical consequences.
Although Dimon had previously warned of global instability, which was particularly relevant to wars in Ukraine and the Middle East – this year’s letter marked a clear shift in tone toward U.S. domestic policy.
So far, he has largely avoided direct criticism of Trump’s tariffs, which in January showed that people should “get over it” if they help create and cause slight inflation. But as Trump’s trade measures expand greatly, Dimon’s position seems to have become stronger.
Even in recent market volatility, Dimon warns that deeper corrections may still exist. “Even though the market value has dropped recently, the price remains relatively high,” he wrote. This, he said, blended with the abnormality of global risks, enough to remain “very cautious.”
While the U.S. economy has remained “resilient” until recently, consumer spending and business activity have stabilized, Dimon pointed out signs of weakness.
He ended his message by highlighting the broader gravity of the moment: “We have faced the most dangerous and complex geopolitical and economic environment since World War II.”
(This story has not been edited by DNA staff and published from ANI except for the title)
