JPMorgan CEO Dimon Says Tariffs 'Will Slow Down Growth'

Key Takeaways

• JPMorgan Chase CEO Jamie Dimon wrote in his annual letter to shareholders Monday that the Trump administration's newly announced tariffs are likely to slow growth and raise prices.
• "Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," Dimon wrote.
• Dimon said that the tariffs could be negotiated, and should be resolved quickly before negative impacts get worse.

JPMorgan Chase (JPM) CEO Jamie Dimon wrote in his annual letter to shareholders Monday that the Trump administration's newly announced tariffs are likely to slow growth and raise prices.

"For the short-term, we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products," Dimon wrote. "How this plays out on different products will partially depend on their substitutability and price elasticity. Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth."

Dimon said that President Trump's policy platform of "America First is fine, as long as it doesn't end up being America alone."

Negative Tariff Effects 'Would Be Hard to Reverse'

The CEO also said that once the currently proposed tariffs are negotiated, he hopes there are long-term positive impacts for the U.S., like increased manufacturing. However, Dimon stressed the need to resolve the tariff issue quickly, "because some of the negative effects increase cumulatively over time and would be hard to reverse."

Dimon and other banking executives are likely to give their first extended thoughts on tariffs and the current state of the economy on their first-quarter earnings calls. JPMorgan is slated to report its results Friday.

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