Dimon Adjusts Stance on Tariffs: "Uncertainty is not a desirable state of affairs"
In a 60-day shift, JPMorgan Chase CEO Jamie Dimon softened his stance on President Donald Trump's tariff policy from a casual dismissal to a cautious concern.
"The normal, hardworking American isn't going to adjust their daily routine just because they hear about tariffs," Dimon remarked in a chat with Semafor earlier this week. However, he noted that businesses might. "Uncertainty isn't good," he warned.
This milder tone contrasts with Dimon's remarks at the World Economic Forum in Davos, Switzerland, where he initially argued that tariffs could be considered an "economic tool" or "economic weapon." Back then, he voiced that a bit of inflation, if coupled with national security benefits, was acceptable.
Trump's inconsistent tariff policy has unleashed stock market volatility since then. Despite Wednesday's market recovery, the S&P 500 still plummeted more than 7% over the past month.
On Wednesday, Trump slapped 25% tariffs on all steel and aluminum imported into the U.S., which triggered prompt retaliation from Canada and the European Union. Over the past year, these tariffs have initiated a global trade war. Economists have cautioned that widespread tariffs could lead to price hikes on goods ranging from food to new homes.
Larry Fink, BlackRock's CEO and the world's largest asset manager, echoed Dimon's concerns about the trade war on Wednesday. "The economic impact in the short term is that people are hesitant and reluctant," he told CNN. "I hear from CEOs throughout the economy that the economy is weakening as we speak."
Despite these concerns, Fink remains hopeful about the long-term benefits of Trump's policies, particularly the potential for reduced tariffs in the future. "When the president talks about reciprocal tariffs, it may bring down tariffs in the long run," he opined, expressing his continued optimism for the U.S. economy in the long haul.
- JPMorgan Chase CEO Jamie Dimon cautioned that businesses might need to adjust their operations due to the uncertainty caused by President Trump's tariff policy.
- Dimon's warning about businesses potentially needing to adapt comes after he initially argued that tariffs could be an acceptable economic tool.
- Economists have warned that widespread tariffs could lead to price hikes on various goods, which could significantly impact the average consumer.
