New York
CNN
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Businesses and mainstream economists around the world are worried about higher prices as President Donald Trump unveils his tariff-heavy economic strategy. But Jamie Dimon, CEO of the world’s largest bank, believes there may be too much worry and not enough faith in Trump’s plan.
Tariffs are an “economic tool” or “an economic weapon,” JPMorgan Chase CEO Damon said in an interview with CNBC on Wednesday from Davos, Switzerland, where the World Economic Forum is taking place. Depends on how they are used. . “I’ll put it in perspective: If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it.”
Currently, Trump is threatening to impose a 10% tariff on Chinese goods imported into the US and a 25% tariff on goods from Mexico and Canada starting February 1.
However, Dimon said these threats can be effectively used to “bring people to the table” to negotiate more favorable trade terms. He believes that the Trump administration is trying to use him in this way.
That could mean the U.S. imposes lower tariffs on Mexico, Canada and China than Trump has set — or perhaps no new tariffs at all. “We’re going to find out,” Dimon said.
Many economists, including those at JPMorgan Chase, have predicted that the tariffs, combined with the mass deportations Trump has promised to implement, have the power to accelerate inflation in the United States. However, there is some debate among economists about whether the tariffs will only cause a one-time increase in prices or if consumers will become accustomed to expecting higher prices in the future as a result of the tariffs, potentially leading to higher prices. Inflation will increase.
This story is in development and will be updated.
