①JPMorgan CEO Jamie Dimon's concerns about the impact of 'Trump tariffs' have diminished, viewing them as more moderate and thoughtful, and believes they could help companies with exports and manufacturing returning to the U.S.; ②Dimon had previously worried that tariffs might push up inflation and lead to a recession, but in his most recent interview, he stated that the tariffs have become more moderate and are more important for promoting economic growth.
Jamie Dimon, the CEO of JPMorgan, known as the 'King of Wall Street,' appears to be less concerned about the impact of the 'Trump tariffs.' For several months, he had been critical of the Trump administration's efforts to reshape global trade policies.
However, in his latest interview on Thursday, he changed his tone, saying, 'When we started imposing tariffs, we had no idea what it would be like.' He was referring to the 'Freedom Day tariffs' announced by Trump in early April.
'But now we have a better idea, and the tariffs are more moderate, thoughtful, and cautious. Hopefully, this will help some companies with their exports. Perhaps some people will move their manufacturing back to the U.S. So far, everything is good!' he said.
In his April memo to JPMorgan shareholders, Dimon wrote, 'The recent tariffs may push up inflation and make many believe that the likelihood of a recession is higher. Regardless of how you view the justifications for the newly announced tariffs, or whether the long-term effects are positive or negative, they could have significant short-term impacts.'
He pointed out at the time that, in the short term, with rising input costs and increased demand for domestic products, we are likely to see inflationary outcomes, not only in imported goods but also in domestic prices. How this will affect different products partly depends on their substitutability and price elasticity. Whether the tariff measures will lead to a recession remains unknown, but they will certainly slow down economic growth.
In his most recent interview, Dimon stated, 'They might push up inflation, but what you really want is more growth. You know, that's much more important than whether inflation is rising or falling. So, the tariffs themselves, you know, they have significantly moderated.'
Dimon also praised Trump's trade efforts, which have set the baseline tariff rates for most trade agreements at just 15%. He said, 'You know, I think people can accept a figure like 15%. In many cases, these are principles-based agreements, and a 15% tariff might only apply to half of the imports, not 100%.'
Our commodity imports are around $4 trillion. Therefore, if the average is 7% or 8%, you know, in a $30 trillion economy, we are talking about $300 billion annually. So this could have some impact. And clearly, some of the impact will be passed on, and some will not. We don’t know yet,” he added.
Dimon also noted that, in addition to other business investments, (these tariffs) could attract companies to produce in the U.S.
In addition to the tariffs, Dimon also gave high praise to the previously passed 'Big and Beautiful' bill.
I believe our tax reform bill has created a very stable and internationally competitive tax environment. So I think it's important for people to understand this. If the U.S. had a tax system that lacked international competitiveness, it would be detrimental to the American people—believe it or not, especially to low-income individuals. This is something that is often completely overlooked," he said.
Editor/Melody