Jamie Dimon Flip-Flops on Trump Tariffs — Now Warns of ‘Greater Probability of Recession’ After Previously Telling Investors to ‘Get Over it’

(AP Photo/Alex Brandon, File)

JPMorgan Chase CEO Jamie Dimon, one of the financial world’s most influential figures, is changing his tune about the tariffs newly-announced by President Donald Trump.

In his annual letter to shareholders published Monday, Dimon — in a section titled, “America and the world are at a critical crossroads: comprehensive action and leadership are imperative now” — warned of the potential impact of the president’s tariffs.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon wrote. He added, “Whatever you think of the legitimate reasons for the newly announced tariffs—and, of course, there are some—or the long-term effect, good or bad, there are likely to be important short-term effects. As for the short-term, we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products. How this plays out on different products will partially depend on their substitutability and price elasticity. Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

Dimon wouldn’t go as far as to say that tariffs could singlehandedly cripple the U.S. economy, but considers them to be “one large additional straw on the camel’s back.”

That is a very different note than the one the JPMorgan Chase CEO was sounding as recently as January. In an interview with CNBC from Davos at the World Economic Forum, Dimon downplayed the impact of tariffs — and argued the national security benefits could outweigh any hit to the economy.

“I would put in perspective: If it’s a little inflationary, but it’s good for national security, so be it,” Dimon said. “I mean, get over it.”

Dimon is set to give his first TV interview since the tariff announcement to Maria Bartiromo on Fox Business Wednesday morning.

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