JPMorgan Chase CEO Jamie Dimon said Wednesday that the looming tariffs that President Donald Trump is expected to impose on U.S. trading partners can be viewed positively.
Despite fears the tariffs could spark a global trade war and reignite inflation at home, the head of the largest U.S. bank by assets said they could protect U.S. interests and bring trading partners back to the table for better deals for the country, if they were used correctly.
“If it’s a bit inflationary, but good for national security, then so be it. I mean, get over it,” Dimon told CNBC’s Andrew Ross Sorkin during an interview at the World Economic Forum in Davos, Switzerland. “National security trumps a little more inflation.”
Since taking office, Trump has been preoccupied with tariffs, threatening to impose duties on Mexico and Canada on Monday before expanding the scope Tuesday to include China and the European Union. The president told reporters that the EU is treating the US “very, very badly” because of its large annual trade surplus. The US last year had a deficit of $214 billion with the EU until November 2024.
Among the considerations is a tariff of 10% on China and 25% on Canada and Mexico, as the US looks for a review of the tripartite treaty negotiated by Trump during his first term. The US-Mexico-Canada Agreement is due for review in July 2026.
Dimon did not elaborate on the details of Trump’s plans, but said it would depend on how the tasks are carried out. Trump has indicated that the tariffs could take effect on February 1.
“I look at tariffs, they are an economic tool, that’s all,” Dimon said. “They are an economic weapon, depending on how you use it, why you use it, things like that. Tariffs are inflationary and not inflationary.”
Trump imposed broad tariffs during his first term, during which inflation fell below 2.5% each year. Despite the looming tariff threat, the US dollar has fallen this week.
“Tariffs can change the dollar, but the most important thing is growth,” Dimon said.
Dimon wasn’t the only major Wall Street CEO to speak positively about tariffs.
Goldman Sachs CEO David Solomon, who also spoke to CNBC from Davos, said business leaders are preparing for shifts in policy, including on trade issues.
“I think over time it will culminate in a rebalancing of certain trade agreements. “I think a rebalancing could be constructive for U.S. growth if done right,” Solomon said. “The question is how quickly and how thoughtfully. Some of this is negotiating tactics for issues beyond just trade.”
“If used properly, it can be constructive,” he added. “This will unfold over the course of the year and we need to monitor it closely.”