JPMorgan Chase CEO Says Tariffs Will Likely Spur Inflation, Slow Economic Growth

08:13 AM EDT, 04/07/2025 (MT Newswires) -- JPMorgan Chase ( JPM ) Chief Executive Jamie Dimon said Monday that the recent tariffs imposed by the Trump administration will likely increase inflation, slow down economic growth, and could cause a recession.

In an annual letter to shareholders, Dimon wrote that, in the short term, the US is likely to see inflationary outcomes not only on imported goods but also on domestic prices, as input costs rise and demand increases on domestic products.

The executive said that the uncertainties surrounding the new tariff policy should be ironed out sooner rather than later. "The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse," he remarked.

Regarding the current turbulence, Dimon listed tax reform and deregulation as potential positives, and trade wars, ongoing sticky inflation, high fiscal deficits, and high asset prices and volatility as potential negatives.

"I am hoping that after negotiations, the long-term effect will have some positive benefits for the United States. My most serious concern is how this will affect America's long-term economic alliances," Dimon wrote.

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