India: JPMorgan Chase CEO Jamie Dimon sounded alarm on US President Donald Trump‘s recent reciprocal tariff measures. He warned that these measures may spark inflation and lead to recession in the world’s biggest economy, the US.
In an annual letter to shareholders, Dimon advised that the US should explore steps to strengthen trade relationships with nations like India, instead of asking them to align themselves.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” he said on Monday, adding, “These significant and somewhat unprecedented forces cause us to remain very cautious.” Dimon said that even if the US avoids recession, the tariffs will slow down growth.
“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars’, ongoing sticky inflation, high fiscal deficits, and still rather high asset prices and volatility,” said Dimon.
He further remarked, “As for the short-term, we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic product.”
What Else Did Dimon Said For India?
Noting that the US has no trade agreements with some of its closest allies, Dimon suggested that Washington could bring non-aligned nations like India closer by extending a friendly gesture.
“Deepening high-standard trade with key trading partners is good economics and great geopolitics. We don’t need to ask many nonaligned nations, like India and Brazil, to align with us – but we can bring them closer to us by simply extending a friendly hand with trade and investment,” said Dimon.
Notably, the US has increased the duty on Indian imports to 26% and imposed a 10% tariff on products from Brazil.
US recently imposed 34% tariffs on Chinese goods. Meanwhile, China’s Finance Ministry has announced a reciprocal move, imposing an additional 34% tariff on all US goods. This tit-for-tat escalation further intensifies the global trade tensions.
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