JPMorgan CEO Jamie Dimon Cautions of “Significant Turbulence” Due to Tariff Risks
The CEO of a leading U.S. bank attributed his economic predictions to ‘trade wars’ and tariffs.
On Friday, Jamie Dimon, the CEO of JPMorgan Chase, cautioned about “significant turbulence” affecting the U.S. economy due to recent tariff declarations and persistent inflation combined with elevated deficits.
“As always, we hope for the best while preparing the Firm for a range of possible scenarios,” he noted, further explaining that “clients have adopted a more cautious stance amid increasing market volatility linked to geopolitical and trade tensions.”
Dimon’s remarks came as JPMorgan, the largest bank in the United States, reported a 9 percent profit increase for the first quarter of 2025, yielding $14.6 billion in net income, up from $13.4 billion during the same period the previous year.
Last week, the Trump administration rolled out significant reciprocal tariffs affecting numerous countries but paused some on Wednesday, maintaining a baseline 10 percent tariff on nearly all nations. Following the tariff announcements, JPMorgan’s stock experienced around an 8 percent decline, reaching a seven-month low earlier this week.
On Wednesday, President Donald Trump announced a 145 percent tariff on Chinese imports entering the United States. In retaliation, the Chinese government declared on Friday that it would implement a 125 percent tariff on U.S. goods.
Related Stories
On Thursday, Trump expressed optimism to reporters at the White House regarding the possibility of a deal with China, indicating his desire to engage in discussions with Chinese leader Xi Jinping. Meanwhile, the Trump administration has downplayed the turmoil, suggesting that forming agreements with other nations would provide more stability for the markets.
U.S. Trade Representative Jamieson Greer acknowledged that China’s recent retaliatory measures were not unexpected but described them as “definitely unfortunate.”
The announcement regarding the tariff pause resulted in a surge in global stock markets on Wednesday, following a period of extreme volatility that saw trillions of dollars lost in equity markets. However, the market turned negative on Thursday, experiencing significant declines.
Earlier this week, Dimon mentioned to Fox Business his belief that a recession is the “likely outcome” of the tariffs, but he also pointed out that “a huge, complex geopolitical situation and large fiscal deficits exist, not only here but globally.”
“Persistent inflation, which I believe will not dissipate quickly,” he remarked on Wednesday. “And then there’s the uncertainty surrounding tariffs and trade. Tariffs and trade are just components of that broader equation. They do not exist in isolation.”
Reuters contributed to this report.
