The CEO of the world’s largest bank is backing President Donald Trump’s tariff plans in a new interview. It’s a reversal from JPMorgan Chase CEO Jamie Dimon’s past stance on tariffs.
In 2018, Dimon told CNN, that tariffs during Trump’s first term would be a “threat” to the economy.
He doubled down in 2019, telling the lobbying group Business Roundtable that tariffs “wouldn’t be positive,” according to the Financial Times.
What is Dimon saying now?
Fast forward to Trump’s second term, Dimon had a fresh take while talking with CNBC at the World Economic Forum in Davos, Switzerland.
“They are an economic tool, that’s it. They’re an economic weapon, depending on how you use it and why you use it and stuff like that.” Dimon said. “People are arguing, is it inflationary, is it not inflationary? I would 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.”
Dimon did not get into the details, saying the outcome depends on how the tariffs are implemented.
Why didn’t Trump move forward with tariffs on Day 1?
After winning the presidential election, Trump promised tariffs on his first day in office but that didn’t happen.
Trump told reporters Monday, Jan. 20, that he is still considering a 25% tariff on Mexico and Canada, likely to go into effect Feb. 1.
As for China, the president said before taking office that tariffs on Chinese goods could be 60% or more, intensifying an ongoing trade war.
On his second day in office, Trump said they’re looking at a 10% tariff on China for the time being.
In a memo, Trump directed several agencies to study the effects of various tariffs and trade agreements.
He tasked the U.S. trade representative to look into whether China is breaking an existing trade agreement, which could lead to more tariffs.
