Dimon: Trump’s Tariffs as Tools for National Security

During an interview at the World Economic Forum in Davos, JPMorgan Chase CEO Jamie Dimon expressed a positive outlook on President Trump’s anticipated tariffs, viewing them as an “economic tool” and “weapon” that, if implemented correctly, could benefit national security even if they lead to some inflation. He highlighted potential tariffs of 10% on China and 25% on Canada and Mexico. The U.S. had a $214 billion trade deficit with the EU last year through November 2024, which indicates significant trade imbalances concerning the European Union. Dimon stated that, throughout Trump’s first term, inflation remained below 2.5% annually, and despite new tariff threats, the U.S. dollar has weakened during the week of the interview. He emphasized that while tariffs can impact the dollar, “the most important thing is growth.”

Dimon mentioned that properly executed tariffs could protect American interests and even compel trading partners to negotiate better deals. He underscored that the effectiveness of tariffs is contingent upon their strategic implementation. Dimon did not elaborate on the specifics of Trump’s tariff plans but noted they are set to begin on February 1. Furthermore, he alluded to the possibility that the tariffs might act as a catalyst for re-evaluating the U.S.-Mexico-Canada Agreement, which is up for review in July 2026. Additionally, Goldman Sachs CEO David Solomon bolstered Dimon’s perspective by noting that appropriate tariff implementation could lead to constructive rebalancing of trade agreements, underscoring the need for careful and thoughtful negotiation tactics moving forward.

Source: CNBC