Jamie Dimon on tariffs: ‘Get over it’

Businesses worldwide and mainstream economists are fretting 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’s perhaps too much worrying and not enough faith in Trump’s plan.

Businesses worldwide and mainstream economists are fretting 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’s perhaps too much worrying and not enough faith in Trump’s plan. Tariffs are “an economic tool” or “an economic weapon,” depending on how they’re used, said Dimon, head of JPMorgan Chase CEO, in an interview Wednesday with CNBC from Davos, Switzerland, where the World Economic Forum is taking place. “I would put 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 a 10% across-the-board tariff on Chinese goods imported to the US and 25% tariffs on Mexican and Canadian goods, come February 1. However, Dimon said these threats can be used effectively to “bring people to the table” to negotiate more favorable trade terms. He believes the Trump administration is attempting to use them that way. That could mean the US imposes lower tariffs on Mexico, Canada and China compared to the rates Trump has floated — or perhaps no new tariffs at all. “We’re going to find out,” Dimon said. Many economists, including those from JPMorgan Chase, have predicted that tariffs, combined with the mass deportations Trump vowed to implement, have the power to spur higher inflation in the US. However, there is some debate amongst economists as to whether tariffs alone will cause a one-time increase in prices or if consumers will grow accustomed to expecting higher prices in the future as a result of tariffs, leading to potentially higher inflation.