Jamie Dimon, CEO of JPMorgan Chase, has cautioned investors that the US economy is experiencing “significant turbulence,” attributing it to President Trump’s escalating trade conflict which is “disturbing the markets.”
“Recent tariffs are expected to drive inflation upwards, and many individuals are starting to believe that there is a considerable likelihood of a recession,” Dimon noted in a letter to shareholders on Monday. “Whether the tariff actions will lead to a recession is uncertain, but it will decelerate growth.”
Trump unveiled substantial tariffs on Wednesday, claiming these initiatives will ultimately boost the US’s growth potential and stimulate American manufacturing. He draws a comparison with patients undergoing repeated surgeries, emphasizing their reliance on the US economy and trade.
“I don’t enjoy causing pain, but sometimes I have to endure my medicine to remedy a situation,” Trump informed journalists on Air Force 1 while heading back to Washington, D.C. on Sunday evening.
The market experienced a significant decline early Monday but later rebounded late in the morning, optimistic about Trump possibly considering a 90-day tariff pause. However, the White House retracted that idea.
Dimon, who has directed the nation’s largest bank for nearly 20 years and is regarded as one of the most prominent business figures globally, expresses a desire for swift tariff negotiations to stabilize the market, expressing his main worry about “how this will impact America’s long-term economic relationships.”
“Numerous uncertainties regarding the new tariff policy exist: services, possible retaliatory actions from other countries, trust issues, effects on investments and capital movements, repercussions on corporate earnings, and the potential influence on the US dollar,” he detailed in his analysis to shareholders.
“The sooner this issue is addressed, the lesser the negative impacts will accumulate over time and become hard to reverse. In the immediate term, it’ll be viewed as one large straw on the camel’s back.”
He noted that the tariffs worsen an already precarious economic outlook.
“The economy is encountering significant turbulence (including geopolitical factors), challenged by tax reform and deregulation, adverse impacts of tariffs and the ‘trade war,’ continual expansion of stickiness, elevated financial challenges, and considerably high asset prices and instability,” Dimon stated.
Dimon’s letter arrives alongside another business leader sounding the alarm.
Billionaire hedge fund manager Bill Ackman, a supporter of Trump last year, issued an open letter on Sunday night addressing his concerns about social media.
“Business relies on confidence. The president has eroded the trust of business leaders worldwide,” he remarked. He expressed this on x. “The repercussions for our country and millions of citizens who have backed the President, especially low-income consumers already facing severe economic pressure, will be profoundly negative.”
“If you’ve never realized it before, I’m here to tell you plainly, no matter what others think, personally, regardless of the outcome for me,” Ackman wrote in a follow-up post after receiving criticism from Trump supporters online.
