JPMorgan’s Dimon Warns of Recession Risks From Trump’s Tariffs

NEW YORK, NY — JPMorgan Chase CEO Jamie Dimon has issued a dire warning regarding President Donald Trump’s tariff policy, stating it could lead to rising prices, push the global economy toward a downturn, and diminish the United States‘ standing in international affairs.

In a letter sent to shareholders on April 7, 2025, Dimon pointed out that recent tariffs might increase inflation and raise the likelihood of a recession. “The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” he noted.

Dimon, an influential figure in global finance, emphasized the importance of America’s “extraordinary standing,” which he believes has been built on economic strength, military power, and moral leadership. He added, “America First is fine, as long as it doesn’t end up being America alone,” cautioning that fragmented military and economic alliances could gradually weaken the nation.

He remarked that geopolitical factors, including trade practices from China, have harmed American workers. However, he suggested that the current tariffs introduced by the Trump administration are more extensive than anticipated. “Brace yourselves,” he advised.

Dimon also addressed the recent volatility in the stock market, indicating that U.S. markets could be headed toward bear territory following a record high in February. “Even with the recent decline in market values, prices remain relatively high,” he stated, advocating for cautious financial practices amidst unprecedented economic challenges.

The CEO further noted that prior to the recent turmoil, the U.S. economy appeared resilient, with strong consumer spending and healthy businesses. Yet he conveyed concern about ongoing geopolitical and financial pressures. “We face the most perilous and complicated geopolitical and economic environment since World War II,” he said, underlining the urgency of the situation.

This warning from Dimon arrives amid global market declines, with fears escalating that the tariffs may exacerbate economic instability. The JPMorgan report aligns with a broader sentiment among business leaders regarding the unpredictability of the current economic landscape.

In earlier comments made in January, Dimon appeared more optimistic, suggesting tariffs could benefit U.S. manufacturing despite the risk of inflation. However, his latest commentary indicates a significant shift in perspective as the implications of Trump’s trade policies become more apparent.

Dimon’s letter to shareholders serves both as a warning and a call for swift resolution to tariff disputes to prevent long-term economic damage. He emphasized, “The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse.”

As the market continues to react to these policies, other prominent business figures, including Bill Ackman, have called for a reevaluation of trade strategies to maintain investor confidence in the U.S. economy.