JPMorgan Chase CEO Jamie Dimon said in a new interview that a small increase in inflation caused by the Trump administration’s tariff plans would be worthwhile in the service of national security concerns.
Dimon appeared on CNBC’s “Squawk Box” and said tariffs are an economic tool that can be used for a variety of reasons, and that while they could cause inflation, that would be acceptable if it helped the U.S. meet national security goals.
“I look at tariffs, they are an economic tool, that’s it. They’re an economic weapon, depending on how you use it and why you use it and stuff like that,” Dimon said.
“People are arguing, is it inflationary, is it not inflationary? I would put it in perspective – if it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it. National security trumps a little bit more inflation,” he said.
JAMIE DIMON WEIGHS IN ON TRUMP’S WIN, POLICIES HIS ADMIN SHOULD FOCUS ON
Dimon went on to say that the way the Trump administration might use tariffs to pursue more favorable trade terms or address national security issues is a more important question than whether they will cause inflation.
“But I think really, the question is how they get used. Can they be used to bring people to the table? Yes. Is there some unfair trade? Yes. Is there some state-owned subsidies? Yes. Is the president going to use it that way and his team? Yeah, and we’ll see. But how it gets played out – we’re going to find out,” Dimon said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 263.03 | +3.87 | +1.49% |
JPMORGAN SETTING UP A ‘WAR ROOM’ TO KEEP UP WITH TRUMP’S POLICY CHANGES
President Donald Trump campaigned on imposing an across-the-board tariff of 10% to 20% on all imported goods, as well as higher tariffs of up to 60% on goods imported from China.
While he didn’t implement those tariffs during his first two days in office, Trump told reporters at the White House on Tuesday that he’s planning to start with a 10% tariff on China that would take effect at the start of February.
“We’re talking about a tariff of 10% on China, based on the fact that they’re sending fentanyl to Mexico and Canada,” Trump said. “Probably Feb. 1 is the date we’re looking at.”
TRUMP’S TARIFFS ON MEXICO, CANADA: COMPANIES THAT HAVE RAISED ALARMS
Trump also signed an executive order after taking office on Monday titled “America First Trade Policy” that directed the Commerce and Treasury Departments to investigate the causes of annual trade deficits and the risks they pose and make recommendations about actions like tariffs to remedy trade deficits.
The order also instructed those agencies along with the Department of Homeland Security (DHS) to design and implement Trump’s “External Revenue Service (ERS) to collect tariffs, duties, and other foreign-trade related revenues.”
Trump intends for the ERS to collect tariff revenue from foreign sources, but economic experts have pushed back on that goal, noting that U.S.-based importers pay tariffs when their imported goods enter the country. Those tariffs are currently collected by U.S. Customs and Border Protection, a subagency of DHS.
Fox News Digital’s Greg Norman contributed to this report.
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