The CEOs of two of America’s largest banks discussed how President Donald Trump’s tariffs and other factors are impacting the economy and markets with the release of their quarterly earnings reports on Friday.
JPMorgan Chase CEO Jamie Dimon and Wells Fargo CEO Charlie Scharf each discussed Trump’s tariffs in letters included with their firms’ respective earnings reports on Friday.
Dimon, who wrote in a letter to shareholders earlier in the week that tariffs are likely to increase inflation and raised concerns about their impact on U.S. economic alliances, noted that tariffs and trade are weighing on the economic outlook.
“The company 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,” Dimon wrote. “As always, we hope for the best but prepare the Firm for a wide range of scenarios.”
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Scharf said that he and the bank are supportive of efforts to improve trade terms for American companies, but acknowledged the risks and said that the sooner the Trump administration can secure favorable trade agreements, the better off the U.S. economy will be.
“We support the administration’s willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions. Timely resolution which benefits the U.S. would be good for businesses, consumers, and the markets,” he said.
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Earlier this week, Trump announced a 90-day pause in his “reciprocal” tariff plans, while leaving previously implemented 25% tariffs on Mexico and Canada in effect, with an exception for goods covered by the U.S.-Mexico-Canada Agreement. He also raised tariffs on imported goods from China to 145%, prompting the Chinese government to retaliate with 125% tariffs on American exports.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 234.72 | +7.98 | +3.52% |
| WFC | WELLS FARGO & CO. | 63.11 | -3.22 | -4.85% |
The administration says it is starting negotiations with other U.S. trading partners, though a timeline for the completion of any such deals is unclear at this time.
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Scharf added that the economy may slow down this year due to the uncertainty over trade and other policies, but noted that could change depending on how any policy shifts play out and when they occur.
“We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes,” he wrote.
“We and our customers come into the current environment from a position of strength that should serve us well,” Scharf added. “We are prepared for a variety of outcomes, our focus is unwavering, and we will continue transforming Wells Fargo by investing to build a well-controlled, faster-growing and a higher-returning company while we work to better serve our customers and become more efficient.”
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