JPMorgan Chase CEO Warns Donald Trump’s Tariffs Could Trigger Recession | US News
The CEO of JPMorgan Chase has indicated that Donald Trump’s extensive tariffs are “likely” to trigger a recession.
Jamie Dimon is a leading figure in corporate America and has frequently been sought for advice by various administrations during critical periods.
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A recession is defined as at least two consecutive six-month periods of economic decline in gross domestic product (GDP), which represents the total monetary value of goods and services produced within a given timeframe.
During an appearance on Fox Business, Mr. Dimon remarked, “I think probably [a recession is] a likely outcome.”
“Watching a 2000-point drop [in the Dow Jones Industrial Average] can create a self-perpetuating cycle, can’t it?” he added.
Jamie Dimon. Pic: Reuters
As he advised the Trump administration, Mr. Dimon urged the US government to make swift advances on trade agreements with other nations.
“Take a deep breath, negotiate some trade deals. That’s the most beneficial action they can take,” he stated. “I’m maintaining a level-headed perspective. However, things could worsen if we fail to progress here.”
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Trump’s tariffs: What you need to know
JPMorgan has reportedly “lost a few bond deals already” as international clients have expressed a preference for local banks, the CEO noted.
Mr. Trump‘s initial 10% tariffs went into effect on Saturday, April 5, and his escalated tariffs – such as the 20% rate for the European Union – were rolled out at 5 AM today.
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China now faces the most severe tariff of 104% after the US president increased the rate due to Beijing’s retaliation.
With rising concerns over a global trade war, financial markets have struggled following the tariffs, with Wall Street experiencing its worst week since 2020 and Asian stock markets dramatically dropping.
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Despite the circumstances, the US president shows no signs of relenting, and just moments after slight dips were noted in US markets, he posted on his Truth Social platform: “BE COOL!”
“Everything will turn out fine,” he added. “The USA will emerge bigger and better than ever!”
