Jamie Dimon says tariffs are an economic weapon: 'If it's a little inflationary but it's good for national security, so be it'

• JPMorgan Chase CEO Jamie Dimon said he was looking at tariffs as an economic tool.
• Speaking in Davos, he said they could help address trade imbalances and boost national security.
• “National security trumps a little bit more inflation,” he said.

JPMorgan Chase CEO Jamie Dimon said Wednesday that while tariffs may lead to consumer price increases, they have other potential benefits.

“They’re an economic weapon, you know, depending how you use it,” he told CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland.

President Donald Trump has said he intends to hit Mexico and Canada with 25% tariffs and China with an additional 10% tariff starting February 1.

Many economists and critics have argued that US consumers ultimately bear the costs of tariffs and that the strategy is at odds with Trump’s promise to bring prices down.

Dimon acknowledged the debate over the policy’s contribution to inflation but said there were important considerations aside from keeping costs as low as possible.

"If it's a little inflationary but it's good for national security, so be it," he said, adding, "National security trumps a little bit more inflation."

Dimon previously said he was "cautiously pessimistic" about the economy as a second Trump presidency begins, even against a backdrop of geopolitical uncertainties.

Tariffs, he said on Wednesday, can be a way to "bring people to the table" to address complex issues like unfair trade balances and state subsidies.

"We'll see how it gets played out," he said. "We're going to find out."

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