JP Morgan Chase CEO Jamie Dimon on Wednesday weighed in on President Trump’s proposed tariffs on Canada, Mexico and China among other nations, saying national security benefits would outweigh any inflationary impact.
“If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it,” Dimon told CNBC during an interview at the World Economic Forum.
“National security trumps a little bit more inflation.”
Dimon also said he looks at tariffs as an “economic tool.”
“That’s it,” he said.
“They’re an economic weapon, depending on how you use it, why you use it, stuff like that. Tariffs are inflationary and not inflationary.”
Dimon’s remarks come as some economists claim tariffs would increase prices for American consumers and harm the country’s economy.
During an October interview with Bloomberg, Trump stated high tariffs would drive foreign companies to set up shop in the U.S.
“You know, there’s another theory. The tariff, you make it so high, so horrible, so obnoxious, that they’ll come right away,” Trump said to an audience at the Economic Club of Chicago.
“The higher the tariff, the more likely it is that the company will come into the United States and build a factory in the United States so it doesn’t have to pay the tariff.”
Goldman Sachs CEO David Solomon told CNBC at the forum in Davos, Switzerland that he has some faith in Trump’s negotiation tactics but remained leery of the timeline.
“I think that rebalancing can be constructive for U.S. growth if it’s handled right. The question is, how quickly, how thoughtfully,” Solomon said.
“Used appropriately, it can be constructive.”
“This is going to unfold over the course of the year, and we have to watch it closely,” he added.
