JPMorgan Chase & Co.
What Happened: In a recent interview with the Financial Times, Dimon emphasized the importance of respectful and consistent dialogue between the U.S. and China to ease trade tensions. While acknowledging China's significant economic growth and success, he also highlighted widespread global concerns over its trade practices and regional influence.
Dimon, referring to complaints about China flooding global markets with excess capacity, said, "They are scaring Japan, Korea, Indonesia, Vietnam, India." He urged Chinese authorities to be receptive to addressing these concerns.
The JPMorgan Chase CEO argued against total economic decoupling from China, stating it is neither desirable nor necessary. He said that while it is "definitely possible"..."I don't think that should be the objective." He proposed that the U.S. should be self-dependent and collaborate with allies like Europe, the U.K., Japan, Korea, Australia, Philippines to jointly negotiate for equitable trade agreements.
When asked if President Donald Trump should call Chinese President Xi Jinping, Dimon did not answer directly but said, "I think adults should talk to each other and listen to each other and acknowledge when the other person is right, or at least has a good point." The CEO expressed optimism that the engagement between both countries would happen in the future. "You start with a phone call," said Dimon.
Despite apprehensions about a recent dip in the U.S. dollar, Dimon expressed confidence in the U.S. economy, highlighting its rule of law, innovation, and military power. He cautioned against taking America's position for granted, stating, "America First is OK, but not America Alone." The JPMorgan CEO stated that fragmentation in the Western world is a 'bad idea'. "We don't read a book in 40 years: 'How the West was Lost'," stated the JPMorgan CEO.
Jamie Dimon stated that though he doesn't agree with everything that the Trump administration does, he hopes that Treasury Secretary Scott Bessent would lead the trade deals well.
Why It Matters: This isn't the first time Dimon has expressed his views on trade tensions. Earlier in April, he cautioned that President Donald Trump's tariffs could trigger inflation and slow down the U.S. economy. He warned of potential short-term effects, including inflationary impacts on both imported and domestic goods.
Later in the same month, during JPMorgan's first-quarter earnings call, Dimon offered more insights on the possible effects of these tariffs on businesses and the economy. He spoke with JPMorgan economist Michael Farley, who updated the bank's most current forecast, which calls for 50/50 chances of a recession due to the ongoing global trade tensions.
Meanwhile, the U.S. tariffs on China have risen to 245% while President Donald Trump awaits negotiations talks from Chinese President Xi Jinping.
