JPMorgan's CEO Dimon recently stated to the media that President Trump's tariff policy is "too large, too aggressive, and too radical". However, he also believes that Trump's efforts to address the trade imbalance are reasonable and could have positive effects, while warning the U.S. government not to misuse economic sanctions. Dimon thinks that the most serious impacts of Trump's tariffs have yet to surface, and that in the short term, inflation will rise and the economy will slow down, but hopes for a very mild downturn process.
JPMorgan's CEO Dimon (Jamie Dimon) recently criticized President Trump's tariff policy in a media interview. He stated that Trump's tariff policy is "too large, too aggressive, and too radical."
Dimon warned against allowing sanctions and hostile rhetoric towards major trading partners to become too extreme.
Dimon expressed pleasure in seeing the United Kingdom's Labour Party's new government reach a "pioneering" agreement with the USA, but emphasized that it is currently only a principled agreement and not a comprehensive trade agreement.
"I am pleased to see progress on both sides. The previous tariff policies were too large, too aggressive, and applied pressure in every direction. It is a very important step to begin gradually advancing trade negotiations now."
"This is only a principled agreement... A true free trade agreement usually contains 0.01 million to 0.02 million pages of content. But as long as there is progress, that is a good thing."
Dimon believes that the most serious impacts of Trump's tariffs have yet to surface:
"In the short term, you may see inflation rise and the economy slow down, which is the determination of our economists, and I believe this determination is likely to come true."
He pointed out that currently soft indicators such as Consumer and business confidence have declined, while hard data like unemployment rate and investment remain stable, but he expects these figures to soon drop as well:
"I hope it ultimately turns out to be a very mild downturn."
Damon did not rule out the possibility of an economic recession, but his tone remained optimistic:
"If we experience a short-term recession, we will get through it and then hope to return to a growth path."
When asked what advice he would give to Trump, Damon responded:
"Continue to maintain the current direction."
"Look at the southern border, good control results have been achieved... After combating crime, I suggest you continue to push for real immigration reform. We need seasonal labor, a pathway to legalization for some law-abiding but undocumented immigrants, and we also need to address the Deferred Action for Childhood Arrivals (DACA) issue."
He also encouraged Trump to continue advancing campaign promises such as supporting economic growth, loosening regulations, and tax reform:
These measures are very beneficial for the growth of the USA economy. Attention should be focused on these areas. There are many disruptive factors now, and this government should concentrate on these core goals. As for tariffs? Advance country by country, negotiate and resolve them one by one.
He also stated that there is indeed an overall plan behind Trump's tariff policy to push for negotiations.
In my view, he does this to bring people to the negotiating table. It is understandable for Americans to feel that trade is unfair and want to resolve these issues.
Analysis suggests that as a veteran on Wall Street, Dimon generally holds a cautiously supportive stance toward Trump's economic policies, playing the role of a "friend in criticism" during Trump's second term: when policies create excessive uncertainty, he issues warnings but also points out some bullish aspects that may arise from the White House's economic policies.
Regarding tariffs, he believes that while the initial strategy needs improvement, overall, Trump has the right to promote policies he believes are beneficial to voters.
Dimon wrote in his letter to shareholders at the beginning of the year:
The economy is a long-term bond that maintains international relations, and there is nothing wrong with 'America First,' provided it does not evolve into 'America Isolated.'
Editor/lambor