TLDR
- JPMorgan CEO Jamie Dimon warns Trump’s customs can increase inflation and recession probability
- Customs are likely to raise prices on both imported and domestic goods
- Global markets including crypto has fallen since Trump’s customs message
- Bitcoin fell below $ 79,000 to its lowest point since November
- Dimon warns that “America first” should not be “America alone”
Jamie Dimon, CEO of JPMorgan Chase, has issued a warning of the potential economic consequences of President Donald Trump’s latest customs policy. In its annual letter to the shareholders On Monday, April 7, 2025, Dimon expressed concern that new tariffs could increase inflation and increase the chance of an American recession.
“The latest customs are likely to increase inflation and many will consider a greater likelihood of a recession,” Dimon said in their letter. “Whether the menu with customs causes a recession remains questioned, but it will slow down growth.”
The 69-year-old bank manager pointed out that these customs will affect prices in addition to imported goods. Domestic prices are also expected to rise as efforts increase and demand shifts towards domestic products.
Dimon’s comments come in a time of market concern. The global markets have dropped since Trump announced his new customs policy on April 2, 2025. This resulted in the worst week for US stocks since the Covid-19-Pandemic began in 2020.
Market effect is already visible
The effects are already felt in the financial markets, including Cryptocurrencies. Bitcoin fell below $ 79,000 and reached its lowest point since November. At the time of reporting it was $ 78,235, flat in the last 24 hours.
The broader crypto market has also been affected. Coindesk 20, which tracks the 20 largest crypto assets through market value, dropped more than 10% and is down almost 20% over the past month.
These market reactions indicate that investors are worried about the economic consequences of customs policy. The uncertainty has created volatility between different asset classes.
Dimon acknowledged that there may be legitimate reasons for customs. However, he emphasized that, regardless of long -term effects, the short -term impact on the economy can be significant.
Problems with economic views
JPMorgan CEO noted that the US economy was “already weakened” in recent weeks, even before Trump’s customs message. He suggested that inflation may be more persistent than many predicts, which potentially keeps interest rates even when economic growth slows down.
“The economy is facing significant turbulence, with the potential positive effects of tax reform and liberalization and the potential negatives of customs and” trade war, “explained ongoing sticky inflation, high financial deficits and still quite high asset prices and volatility,” explained Dimon.
Dimon is the first CEO of a large Wall Street Bank that publicly addresses Trump’s sweeping customs policy that markets drum. His comments seem to be backtrack from remarks he made in January, when he suggested that people should “get over” duty problems because they were good for national security.
The difference may be in the scale of customs. Dimon noted that the customs levels discussed in January were much lower than was revealed last week.
International relationships warning
While Dimon expressed support for Trump’s “America First” strategy for foreign policy, he warned that it should not develop into “America alone.”
“If the military and economic alliances of the Western world would fragment, America would inevitably weaken over time,” he warned in his letter.
Dimon argued to strengthen the global system that has led to decades of peace and prosperity during American leadership since the Second World War, rather than abandon it.
“In the multipolar world that follows, it will be every nation for itself – which gives our opponents the opportunity to determine the rules and use military and financial compulsion to get what they want,” he wrote.
The bank manager emphasized to maintain strong international partnerships is still crucial. “Economy is the long -lasting glue, and America is good at first,” Dimon said, “as long as it doesn’t stop being America alone.”
Dimon urged a quick solution to customs issues and noted that “some of the negative effects increase cumulative over time and would be difficult to turn around.” He described the situation as “a big extra straw on the back of the camel.”
According to Dimon, Trump’s customs policy has created “many uncertainties”, including its effect on global capital flows, dollars, corporate gains and the response from trading partners.
Despite the current challenges, Dimon offered several recipes to address the issues, including restoring citizen pride and maintaining the US military “at any cost.”
