JPMorgan Chase CEO Jamie Dimon warns tariffs probably push inflation above

CEO JPMorgan Chase Jamie Dimon On Monday, the shareholder said that President Donald Trump’s tariffs probably “increase inflation” both on foreign and domestic goods, and is concerned that their influence would be on America’s economic alliances.

“Whatever you think about the legitimate reasons for recently announced tariffs-and of course there is some album about the long-term effect, good or bad, there will probably be important short-term effects,” the smoke wrote in his letter that noted his first public comments on the public Trump tariffs.

“As for the short-term perspective, we will most likely see the results of inflation not only on imported goods, but also at domestic prices, and the costs for entry increases and demand for domestic products increases. As it plays in different products, partly depends on their replacement and elasticity.

He continued to write that “there is a lot of uncertainty related to a new tariff policy”, including plans for retaliation of US trading partners that could affect the economic outlook, adding that some of these negative consequences will over time difficult for sparse ways and thus to be resolved earlier.

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JPMorgan Chase CEO Jamie Dimon published his annual letter on Monday, which contained warnings on tariffs. (Al Drago / Bloomberg via Getty Images / Getty Images)

“The potential retaliation of actionIncluding services, in other countries, influence on confidence, impact on investment and streams of capital, impact on corporation income and a possible impact on the US dollar, ”he said.

“The sooner this issue is resolved, the better, because some negative effects increase cumulative over time and it would be difficult to cancel. Soon I see it as one big extra straw on the camel back.”

“I hope that after the negotiations, the long-term effect will have some positive benefits for the US,” Dimon said. “My most serious problem is how it will affect long-term America Economic Alliances. ”

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Last week, President Donald Trump announced tariffs for US trades, causing the markets to plunge. (Chip Somodevilla / Getty Images / Getty Images)

Dimon wrote that the US “should remember that other countries have a choice, both in short and long term, and they will make this choice in their own interests based on economics, security and reliability.”

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“The US is missing Trade agreements With some of the closest allies, many of whom have signed trade deals with China. We must more actively seek free (and, of course, fair) trade agreements, especially with strong allies, such as Australia, Japan, UK and – we hope that one day – the European Union, ” – wrote Dimon.” This can be done in such a way that is clearly useful for both parties. “