JPMorgan Chase CEO Jamie Dimon has issued a stark warning about the economic consequences of President Donald Trump’s sweeping tariff policies, cautioning that continued escalation could push the United States into a recession.
In remarks to investors and analysts, Dimon pointed to the latest round of aggressive tariffs—particularly those targeting China and other key trading partners—as a major threat to both consumer confidence and global supply chains. He emphasized that persistent trade friction could suppress business investment, increase costs for American companies, and ultimately slow down job growth.
Dimon highlighted that tariffs, especially at the scale recently announced, would likely be passed on to consumers in the form of higher prices, thereby amplifying inflationary pressures. With interest rates already elevated, he warned the combined effect could choke economic momentum and spark a downturn.
While Dimon acknowledged the intent behind the administration’s efforts to address trade imbalances and protect domestic industries, he questioned the long-term sustainability of using broad-based tariffs as the primary tool for negotiation.
JPMorgan’s internal economic forecasts, according to Dimon, now include a heightened probability of a mild-to-moderate recession beginning within the next year if trade tensions continue to escalate and retaliatory actions from foreign governments further disrupt global commerce.
The bank is advising clients to prepare for increased volatility in the financial markets, citing potential disruptions in retail, agriculture, and manufacturing sectors. Small businesses, which are more vulnerable to sudden cost increases, were identified as particularly at risk.
Dimon’s comments come amid growing concern among financial leaders and economists over the direction of U.S. trade policy. While Trump and his administration remain firm in their stance that the tariffs will ultimately strengthen American economic sovereignty, critics argue that the short-term fallout may outweigh any potential long-term gains.
As economic uncertainty rises, Wall Street and Main Street alike are watching closely for signs of whether additional tariffs will be imposed—or if negotiations with China and other countries will yield a resolution before broader damage takes hold.