From ‘get over it’ to ‘recession’: Major banker flips on Trump tariffs (2025)

The CEO and chairman of America’s largest bank are sounding the alarm on President Donald Trump’s tariffs — despite previously calling them a valuable “economic weapon.”

In his annual letter to shareholders, JPMorgan CEO Jamie Dimon warned that “tariffs will likely increase inflation and are causing many to consider a greater probability of a recession.”

The warning is a shift in tone from Dimon, who said in a CNBC interview in January that tariffs are a matter of “national security,” even if they do cause inflation.

“Get over it,” he said during the interview.

Dimon’s previous comments came after the Trump administration announced plans to put 25% tariffs on Canada and Mexico as soon as the start of February.

During Trump’s first term, Dimon said that further tariffs on China implemented by the Trump Administration could harm the U.S. economy, according to CNBC.

On April 2, Trump announced a sweeping set of tariffs on more than 100 countries.

Many countries were hit with a baseline tariff of 10%, while others, such as Israel and China, were hit with higher tariffs of 17% and 34%, respectively.

The baseline 10% tariffs are already in effect, while the larger tariffs, such as the ones slapped on Israel and China, are set to go into effect on April 9, according to CNN.

The stock market falls

Early Monday morning, stocks tumbled as concerns about how Trump’s tariffs could upend the global economy grew, according to CNN.

The Dow Jones dropped by as much as 1,700 points in the morning, following even greater losses throughout the world, according to the Associated Press.

Stocks in Hong Kong dropped 13.2% on their worst day since 1997, while a barrel of benchmark U.S. crude oil briefly fell below $60 for the first time since 2021, the Associated Press reported.

Later in the morning, stocks began to rise again following a false rumor that Trump would pause the tariffs, according to the Associated Press.

The Dow Jones jumped 900 points, while the S&P 500 went from a loss of 4.7% to a gain of 3.4%, the Associated Press reported.

A White House official said that any reporting about a pause on tariffs was “fake news,” according to CNN.

At the end of the trading day, The Dow Jones Industrial Average fell 349 points, or 0.9%, while the S&P 500 fell by 0.2%, according to the Associated Press. The Nasdaq composite, however, was up by 0.1%, the Associated Press reported.

What are tariffs?

Tariffs are taxes imposed by a government on goods from another country. If a country imposes a 10% tariff on imported cars and a car is worth $50,000, for example, the tariff or tax would be $5,000.

A vocal supporter of tariffs, Trump has said on numerous occasions that they will help collect tax revenue for the United States and bring back manufacturing jobs. The president also views tariffs as a tool to get back at countries — believing they have treated the United States poorly.

During an Oval Office meeting with Israeli Prime Minister Benjamin Netanyahu on Monday, Trump said he is not looking at a pause on the tariffs, according to NBC News.

When asked if the tariffs are permanent or could be subject to change through negotiations, Trump said that both could be true.

“There could be permanent, and there could also be negotiations, because there are things that we need beyond tariffs,” he said. “So we’re going to get fair deals and good deals with every country.”

A consequence of these tariffs is that prices of products, such as produce and automobiles, are expected to rise. Additionally, countries such as China have announced retaliatory tariffs.

Counter tariffs

In response to being hit with a 34% tariff, China announced on April 4 a counter tariff of 34%, according to NPR.

In a post on Truth Social on Monday, Trump threatened China with a 50% tariff if the country did not withdraw its counter tariff by Tuesday.

“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”

In a statement released Tuesday, China’s commerce ministry responded to Trump, saying the country “will resolutely take countermeasures to safeguard its rights and interests,” according to NPR.

“The U.S. tariff escalation threat against China compounds its mistake and further exposes its nature of blackmail, which China will never accept,” the statement said. “China will fight till the end if the U.S. side is bent on going down the wrong path.”