JPMorgan Chase CEO Jamie Dimon The president said Wednesday that looming tariffs Donald Trump The expected hit to U.S. trading partners is likely to be viewed positively.
Despite concerns that the tariffs could spark a global trade war and reignite inflation at home, the head of the largest U.S. bank by assets said that if used correctly, they can protect U.S. interests and bring trading partners back to the negotiating table to secure better conditions for the country. Good deal.
“If inflation is a little high but it’s good for national security, then so be it. I mean, get over it,” Dimon told CNBC. Andrew Ross Sorkin In an interview at the World Economic Forum in Davos. “National security trumps slightly higher inflation.”
Since taking office on Monday, Trump has been on a rampage of saber-rattling over tariffs. Taxes on Mexico and Canadathen expand on Tuesday to China and the EU. The president told reporters that the EU’s attitude toward the United States was “very, very bad” because of the country’s huge annual trade surplus. Last year the United States Deficit reaches $214 billion Cooperation with the EU runs until November 2024.
Among the considerations are 10% tariffs on China and 25% tariffs on Canada and Mexico, as the United States looks forward to a review of the three-way deal negotiated by Trump during his first term. The U.S.-Mexico-Canada trade agreement will be reviewed in July 2026.
Dimon gave no details about Trump’s plan but said it depends on how those duties are implemented. Trump said the tariffs could take effect on February 1.
“I’m concerned about tariffs, they’re an economic tool, that’s what it is,” Dimon said. “They are an economic weapon, depending on how you use it, why you use it, etc. Tariffs cause inflation, not inflation.”
Trump imposed widespread tariffs during his first term, during which inflation ran below 2.5% annually. The dollar fell this week despite the looming threat of tariffs.
“Tariffs can change the dollar, but the most important thing is growth,” Dimon said.
Dimon is not the only major Wall Street CEO to take a positive view of tariffs.
Goldman Sachs CEO David Solomon also told CNBC in Davos that business leaders have been preparing for policy shifts, including on trade issues.
“I think over time this will turn into a rebalancing of certain trade agreements. I think that rebalancing, if done right, can be constructive for U.S. growth,” Solomon said. “The question is, how quickly and how thoughtfully. Some of this is negotiating tactics, not just trade.”
“If used correctly, it can be constructive,” he added. “This will unfold over the course of a year and we will have to watch closely.”
