JPMorgan Chase CEO Jamie Dimon has issued a stark warning about the potential fallout from escalating trade tensions, cautioning that a global trade war could push the U.S. economy into recession, fuel inflation, and strain key international alliances.
In his closely watched annual letter to shareholders, published Monday and reported by the Financial Times, Dimon pointed to new tariffs announced last week by President Donald Trump as a source of economic risk. He said the measures “will likely increase inflation and are causing many to consider a greater probability of a recession.”
Dimon urged swift resolution to the brewing trade conflict, warning that the longer it drags on, the more damage it could do. “The quicker this issue is resolved, the better, because some of the negative effects increase cumulatively over time and would be hard to reverse,” he wrote.
While he expressed hope that negotiations could eventually yield some benefits for the U.S., Dimon underscored the uncertainty surrounding the tariffs—including potential retaliatory actions by foreign governments, reduced business confidence, and disruptions to investment and capital flows.
“My most serious concern,” Dimon added, “is how this will affect America’s long-term economic alliances.”
The comments come as markets and policymakers alike grapple with the global implications of a more aggressive U.S. trade stance.
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