JPMorgan Chase CEO Jamie Dimon said on Wednesday that the upcoming tariffs that the president Donald Trump expected to hit US trading partners could be viewed positively.
Despite fears that the tariffs could spark a global trade war and reignite inflation at home, the head of America’s largest bank by assets said tariffs could protect American interests and bring trading partners back to the table for better deals for the country, if used properly.
“If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it,” Dimon told CNBC Andrew Ross Sorkin during an interview at the World Economic Forum in Davos, Switzerland. “National security trumps a little more inflation.”
Since taking office, Trump has been gun-rattling on tariffs, threatening Monday impose tariffs on Mexico and Canadathen scope expansion Tuesday to China and the European Union. The president told reporters that the EU treats the US “very, very badly” because of its large annual trade surplus. USA last year had a deficit of 214 billion dollars with the EU until November 2024.
Tariffs of 10% on China and 25% on Canada and Mexico are among the considerations as the US looks forward to revising the tripartite deal negotiated by Trump during his first term. The agreement between the US, Mexico and Canada is up for review in July 2026.
Dimon did not go into detail about Trump’s plans, but said it depends on how the duties are implemented. Trump has hinted that the tariffs could take effect on February 1.
“I look at tariffs, they’re an economic tool, that’s it,” Dimon said. “They are economic weapons, depending on how you use them, why you use them, things like that. Tariffs are inflationary, not inflationary.”
Trump imposed sweeping tariffs during his first term, during which inflation fell below 2.5% each year. Despite the looming threat of tariffs, the US dollar edged lower this week.
“Tariffs can change the dollar, but the most important thing is growth,” Dimon said.
Dimon wasn’t the only big Wall Street CEO to talk about tariffs in a positive light.
Goldman Sachs CEO David Solomon, also speaking to CNBC from Davos, said business leaders were bracing for changes in policy, including on trade issues.
“I think that eventually translates into a rebalancing of certain trade agreements. I think that rebalancing can be constructive for US growth if it’s handled properly,” Solomon said. “It’s a question of how fast, how deliberate. Some of this is a negotiation tactic for the done deal rather than simple trading.”
“If used appropriately, it can be constructive,” he added. “This will play out over the course of the year and we have to watch it carefully.”
