JPMorgan CEO Jamie Dimon warns of ‘significant’ risks from tariffs
Newly implemented tariffs will stoke inflation and slow growth, JPMorgan Chase CEO Jamie Dimon wrote in his annual letter to shareholders calling on the uncertainty that’s roiling global markets to end sooner rather than later.
As markets react to President Donald Trump’s newly unveiled raft of surcharges, the 19-year chief executive warned Monday that tariffs will add to inflationary pressures, and whipsaw price action in stocks.
Dimon also cited the burgeoning federal debt as “unsustainable” and a major risk to the outlook.
Extreme market movements are “causing many to consider a greater probability of a recession,” Dimon wrote in his closely watched yearly dispatch on the bank’s performance and the global economy.
“These significant and somewhat unprecedented forces cause us to remain very cautious,” he added. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
Dimon’s assessment comes as Trump doubled down Sunday on what he called “medicine” for a global economic order that he says disadvantages U.S. workers.
As the effects ricochet across the economy, Dimon laid out several ways the policy could undermine confidence, impacting both capital flows and corporate profits.
“The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse. In the short run, I see this as one large additional straw on the camel’s back,” Dimon said.
“I am hoping that after negotiations, the long-term effect will have some positive benefits for the United States. My most serious concern is how this will affect America’s long-term economic alliances,” the CEO added.
A Texas-sized commitment to the state
In a separate section of his letter, Dimon paid homage to the bank’s activities in the Lone Star State, which he credited for helping to “drive economic prosperity, job creation and business growth in Texas for more than 155 years.”
JPMorgan provides 8.5 million Texans with a mix of mortgages, auto loans, checking and savings accounts, and credit cards, the letter stated. In addition, it services nearly 800,000 small business clients in the state.
Dimon lauded the bank’s contributions of “over $1 billion to the Texas economy through goods and services purchased,” in addition to having more than 31,500 employees in the state – “the highest number by state in the country.”
In addition to providing services to schools, hospitals and nonprofits, JPMorgan is also a major provider of financing to the fossil fuel industry – a fact that’s drawn ire from environmentalists – but a role that the bank embraced as part of its Texas legacy.
Since 2019, JPMorgan has extended over $800 billion in credit and capital to a range of local clients including oil, gas, media, technology and telecoms.
“We also know Texas is a great place to do business that values the power of free enterprise and partnership across sectors. We have shown up for Texans in good times and bad, and we will continue to do what it takes to keep growing,” Dimon wrote.