Tariffs Could Spark Inflation and Worldwide Recession, Jamie Dimon Warns

JPMorgan Chase CEO Jamie Dimon has issued a stark warning about the economic risks posed by President Donald Trump’s latest tariff measures. In his annual letter to shareholders released Monday, Dimon highlighted the potential for increased inflation and a further deceleration of U.S. economic growth.

“These newly imposed tariffs are likely to push prices higher and have already led many to factor in a greater likelihood of recession,” Dimon wrote. “Whether they tip the economy into a recession is still unclear, but a slowdown in growth is almost certain.”

Dimon acknowledged there may be valid strategic reasons for the tariffs, but emphasized their near-term consequences could be significant. “Whatever your view on the rationale behind these tariffs, the short-term impact is real — and not just on imports. Domestic prices are expected to climb as well,” he said.

Markets have been rattled since Sunday in anticipation of Trump’s tariff announcement. Bitcoin (BTC) slid below $79,000, hitting its lowest mark since November, and currently hovers at $78,235. The CoinDesk 20 Index, tracking the top 20 crypto assets, has plunged over 10% in a single day and nearly 20% over the last month.

Although Dimon expressed support for Trump’s broader “America First” agenda, he cautioned against isolating the United States from its global allies. “A breakdown of key military and economic alliances would ultimately undermine American strength,” he wrote. “We must be careful that ‘America First’ does not become ‘America alone.’”