Jamie Dimon, one of the most influential leaders of large U.S. banking, criticized Donald Trump's tariff policy.
JPMorgan Chase CEO Jamie Dimon warned on Monday that the tariff policy of U.S. President Donald Trump is leading markets and society into the "most dangerous and complicated geopolitical and economic environment since World War II."
Additionally, the president of the largest bank in the U.S. also considered that Trump's strict levies would increase inflation and could lead the global economy into a recession.
inflation and are causing many to consider a higher probability of recession (...) There remains the question of whether the set of tariffs will provoke a recession or not, but it will slow down growth," Dimon said in a letter to JPMorgan Chase shareholders.
Dimon, one of the most influential leaders of large U.S. banking, also expressed that Trump's 'America First' mentality imposing very high rates on trading partners and strategic competitors could undermine the privileged position of the North American country.
"'America First' is fine as long as it doesn't end up being just the United States (...) If the military and economic alliances of the Western world were to fragment, the United States would inevitably weaken over time. It is extremely important to recognize that security and the economy are interconnected; 'economic' war has caused military war in the past," he wrote.
Last Friday, JPMorgan Chase raised the chances of a global recession from 40% to 60% due to the economic impact derived from this tariff increase, greater than previously forecasted.
"The disruptive policies of the United States have been recognized as the greatest risk to global prospects so far this year," stated JPMorgan strategists led by analyst Bruce Kasman in a report titled 'There Will Be Blood'.
Trump's tariff plan entails a global levy of 10% and higher rates against other countries and blocs, such as 20% for European imports, 34% for Chinese, and 26% for Indian.
Last week, the Nasdaq already lost 10%, the S&P 500 9%, and the Dow 7.9%.
Furthermore, in the two sessions following the announcement of the tariff plan, Wall Street lost about $6.4 trillion in value and the round figure of $10 trillion since Trump's inauguration.
Despite recent market declines, stocks could plummet even further, according to Dimon.
"Even with the recent drop in market values, prices remain relatively high (...) This forces us to remain very cautious," stated the CEO of JPMorgan.