In a recent letter to shareholders, JPMorgan Chase CEO Jamie Dimon emphasized the potential economic repercussions stemming from the tariffs announced by President Donald Trump. According to Dimon, these tariffs are expected to lead to increased prices on both imported and domestic goods, further straining a U.S. economy that has shown signs of slowing down.

Dimon detailed his concerns regarding the effects of tariffs in his annual letter, identifying them as a significant factor that could accelerate inflationary trends. He stated, “Whatever you think of the legitimate reasons for the newly announced tariffs … there are likely to be important short-term effects,” warning that both imported goods and domestic products may face rising costs.

He remarked, “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” indicating uncertainty about the overall long-term impact of these policies.

Dimon is notable for being the first major banking executive to publicly analyze Trump’s extensive tariff policy during a period when global financial markets have experienced severe instability. His commentary comes as U.S. equities faced their worst performance week since the onset of the Covid-19 pandemic.

This year’s letter stands in contrast to his earlier comments from January, wherein Dimon downplayed tariff concerns, suggesting that they were primarily beneficial for national security before the current tariffs escalated. He acknowledged the creation of “many uncertainties,” such as effects on global trade dynamics and corporate profitability, stemming from the tariff policies.

While the U.S. economy had enjoyed significant performance recently thanks to substantial government spending, Dimon noted signs of weakening prior to the announcement of new tariffs. He cautioned that inflation could prove more persistent than anticipated, which may compel the Federal Reserve to keep interest rates elevated despite economic slowdown.

Dimon previously likened impending economic challenges to a “hurricane” due to the potential fallout from the Fed’s monetary policies and geopolitical tensions such as the war in Ukraine.

Under Dimon’s leadership, JPMorgan has reinforced its status as the largest U.S. bank, achieving record revenues for seven consecutive years. Yet, amidst economic fluctuations, he stresses the importance of a cohesive national strategy.

Despite not mentioning Trump directly in his letter, Dimon expressed support for certain presidential priorities like immigration reform and the need for a strong global economic framework. He warned against fragmenting the established alliances that have maintained global stability since World War II.

He urged measures to bolster U.S. civic pride while addressing challenges such as immigration and unfair trade practices, emphasizing the need for a collective approach rather than a solitary national agenda.