JPMorgan CEO Warns Tariffs Will Fuel Prices As Trump Doubles Down, Claims There is 'No Inflation'

JPMorgan CEO Jamie Dimon warned that Donald Trump's tariffs will fuel inflation and slow down economic growth, a statement that goes against the president's latest claims, which double down on the economic policy that is roiling markets across the globe.

In his annual letter to investors, Dimon said there are "many uncertainties surrounding the new tariff policy: the potential retaliatory actions, including on services, by other countries, the effect on confidence, the impact on investments and capital flows, the effect on corporate profits and the possible effect on the U.S. dollar."

"The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse. In the short run, I see this as one large additional straw on the camel's back," he added.

Dimon did acknowledge the U.S. is right to protest on some aspects of its trade relations, but claimed the answer lies in negotiations, especially with its allies. Concretely, he called for the strengthening of alliances to "win the new global 'economic' war" as a way to deter autocrats and preserve the economy across the globe.

Trump, in the meantime, continues to defend his decision, saying the U.S. is addressing years of abuses from other countries, especially China. In a post on his social media platform, Truth Social, Trump said that "Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long timed abused USA is bringing Billions of Dollars a week from the abusing countries on tariffs that are already in place."

"This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They've made enough, for decades, taking advantage of the Good OL' USA! Our past "leaders" are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!" Trump added.

Markets continue to plummet in the meantime, with stock indexes around the world plunging for a third consecutive day. Bloomberg detailed that the selloff has already wiped out $9.5 trillion in value and there is no end in sight for the rout.

Dimon is not the only Wall Street titan to speak against the tariffs as they stand. On Sunday night, Pershing Square CEO Bill Ackman said the world faces an "economic nuclear winter" if Trump doesn't pause the measure.

"The President has an opportunity on Monday to call a time out and have the time to execute on fixing an unfair tariff system. Alternatively, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down," Ackman said in a post on X.