JPMorgan Chase CEO Jamie Dimon on Thursday warned that a potential recession could still occur as turmoil from the Trump administration’s tariffs weighs on the economy.
Dimon attended the firm’s annual Global Markets Conference and said in a Bloomberg Television interview that he’s hopeful the economy will dodge a recession, but that it remains a possible outcome.
“Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point,” Dimon said. “If there is a recession, I don’t know how big it would be or how long it would last.”
Dimon’s remarks come after JPMorgan economists lowered their estimate of the probability of a recession from 60% prior to the temporary reduction in tariffs on China, to below 50% following the pause. Dimon himself warned last month before the pause that recession was “a likely outcome” for the U.S. economy.
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Dimon said that the uncertainty created by tariffs has caused some of the firm’s clients to hold off on investments as volatility continues.
Markets have rallied after the Trump administration and the Chinese government agreed to temporarily lower the tariffs from 145% on Chinese goods and 125% on U.S. exports to 30% and 20%, respectively, as negotiations continue over a long-term deal.
“I think it’s the right thing to do – is to back off of some of that stuff,” Dimon said of the tariff pause for negotiations, adding that the two sides should “have an engaging conversation.”
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He told the outlet that the tariffs have raised the potential for a decline in investments in the U.S., saying, “There’ll be a little of that. We irritate a lot of people. I run into them, they say you know, they’re not buying our Kentucky bourbon.”
Despite the uncertainty and tensions created by the tariffs, Dimon said that the U.S. is still the best place to invest.
“Is America a bad investment destination? No. If you were to take all your money and put it in one country it would still be America,” he said.
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