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JPMorgan Chase (JPM-0.63%) CEO Jamie Dimon is worried that President Donald Trump’s trade war is damaging America’s credibility with other nations.
Dimon told the Financial Times that the U.S. is still “a haven” due to its rule of law and economic and military strength but that Trump’s strong-arm policies could erode some of its economic superiority.
“A lot of this uncertainty is challenging that a little bit. So you’re going to be reading about this nonstop until hopefully these tariffs and trade wars settle down and go away so people can say, ‘I can rely on America,’” Dimon told the publication.
Dimon, the chief executive of America’s largest bank, is also worried that the U.S. and China aren’t discussing the continuing trade war. “I don’t think there’s any engagement right now,” he said. “It doesn’t have to wait a year. It could start tomorrow.”
The U.S. has slapped Chinese imports with tariffs as high as 145%. In response, China installed 125% tariffs on U.S. goods.
“When [the Trump administration] announced the Liberation Day tariffs, they were dramatically different than people expected,” Dimon told the Financial Times. “Way off the table than what people expected. And that was shocking to the system. The global system, not just in the United States.”
The effects of the tariffs are already being felt across industries — from aviation to automotive to tech. Earlier this week, Beijing ordered Chinese airlines not to accept any more deliveries from American plane manufacturer Boeing (BA+2.21%), according to a Bloomberg report. The Chinese government also asked its airlines to halt purchases of aircraft-related equipment and parts manufactured by U.S. companies.
On Monday, S&P Global Mobility (SPGI+1.61%) cut its forecast for 2025 U.S. car sales by 700,000 units, a reduction only bested by the COVID-19 pandemic and the 2008-09 financial crisis. And last week, analysts at Wedbush forecasted that the tariffs will “essentially take the U.S. tech industry back a decade in the process while China steamrolls ahead.”
Dimon added that he thinks the U.S. should be “clear-eyed about what we’re trying to accomplish” with the tariffs. “And I also think we should do it with allies,” he said. ”I would want to negotiate eventually with Europe, with the UK, with Japan, Korea, Australia, Philippines, and have a very strong economic relationship.”