The Chief Executive Officer of JPMorgan Chase, Jamie Dimon, is cautioning investors regarding the risks of increasing prices and a potential decline in the U.S. economy due to President Donald Trump’s tariff strategy.
Dimon indicated in his annual letter to shareholders, “The recent tariffs are expected to elevate inflation and are prompting many to assess the likelihood of a recession more seriously.” He added, “It remains uncertain whether the range of tariffs will trigger a recession, but they will definitely hinder growth.”
He further pointed out, “Regardless of the valid reasons behind the newly imposed tariffs—and there are indeed some—there will likely be significant short-term impacts.” He noted that rising prices would affect not only foreign goods but also domestic products.
Global markets, including cryptocurrencies, have experienced a significant drop since Sunday, with investors bracing for Trump’s latest tariff announcement on Monday. Bitcoin (BTC) dropped below $79,000, hitting its lowest mark since November. Currently, it is trading around $78,235, showing little change over the last 24 hours. The CoinDesk 20, which tracks the 20 largest cryptocurrencies by market cap, has plummeted over 10% today, nearly 20% in the past month.
Dimon expressed his support for Trump’s “America First” policy but stressed that it should not lead to an “America alone” approach.
He cautioned, “If military and economic alliances in the Western world were to fracture, America would inevitably weaken over time.”