JPMorgan CEO Jamie Dimon argues Trump tariffs will increase inflation and hinder the already weakened US economy

JPMorgan Chase CEO Jamie Dimon warned Monday that tariffs announced by President Donald Trump last week will certainly raise prices on both domestic and imported goods, pushing down an already sluggish U.S economy.

Dimon, addressed the tariff policy announced by Trump on April 2 in his annual shareholder letter, which has become a widely read tirade on the status of the economy, recommendations for challenges confronting the United States, and his views on good management.

“Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon said.

His words appear to contradict previous statements he made in January, when he suggested people should «get over» tariff fears since they were good for national security. The tariff levels under consideration at the time were significantly lower than those announced last week.

According to Dimon, Trump’s tariff strategy has created «many uncertainties,» including the effect on global capital flows and the dollar, the impact on business profitability, and the response from trading partners.

While the U.S. economy has fared well in recent years, aided by almost $11 trillion in government borrowing and spending, Dimon says it was «already weakening» in recent weeks, even before Trump announced tariffs. Inflation is likely to be stickier than many expect, which means that interest rates may remain high even as the economy slows, he said.