JPMorgan CEO: Tariffs Burdening ‘Already Weakening’ US Economy

JPMorgan’s CEO says America’s latest tariffs could dampen an economy that was “already weakening.”

In his annual letter to shareholders, published Monday (April 7), Jamie Dimon argues that there are several uncertainties tied to the tariff policy: the effect on confidence, investments, corporate profits and the U.S. dollar, as well as retaliation by other countries.

“The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse,” Dimon wrote. “In the short run, I see this as one large additional straw on the camel’s back.”

He added that he is hopeful the tariffs could — in the long-term — benefit the U.S., but said his “most serious concern” is the impact of the situation on the country’s economic relationships.

“The United States has had a rather healthy and steady economy for years, although it was already weakening as I began writing this letter — and that was before the recent tariff announcement,” Dimon said.

He noted the economy is facing “considerable turbulence” from a number of fronts, including geopolitical issues, inflation, high fiscal deficits, high asset prices and volatility.

As forthcoming research by PYMNTS Intelligence shows, Americans’ financial confidence had already been shaken even before last week’s tariff announcement.

That research, set to be released next week, finds that most consumers, whether they live paycheck to paycheck or not, are reducing spending, either by buying fewer things or buying cheaper products.

This study found consumers already making a connection “between tariffs and the economic pain of persistent inflation and a possible recession, even before the full impact of these policies has hit home — and their wallets,” PYMNTS CEO Karen Webster wrote Monday.

These pullbacks, that report added, all came before Trump’s so-called “Liberation Day” announcement and the ensuing stock market crash.

“So, if consumers do what they say they will do — and have already started to do — with their spending, the simple back-of-the-envelope math predicts a potentially gloomy outcome for the U.S. economy,” Webster wrote. “That’s why many market and economic experts predict slowing economic and anemic GDP growth.”

The unease felt by consumers extends into the business world, where, per additional PYMNTS Intelligence research, 32% of middle market companies say that uncertainty will lead them to miss business opportunities due to that uncertainty, 33% faced delays in getting products to market, while 31% experienced client turnover due to their own uncertain business outlooks.

“Let that sink in,” Webster added. “That’s roughly a third of U.S. businesses making between $100M to $1B in annual revenue — and the integral bridge between the enterprise and smaller business supply chains — who face some sort of economic uncertainty.”

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