‘Countries like India…’: JPMorgan CEO’s advice to Trump amid caution of US recession | World News

JPMorgan Chase CEO Jamie Dimon has issued a stark warning over the impact of US President Donald Trump’s intensifying tariff policies. Cautioning that the moves could trigger inflation and potentially nudge the US economy towards a recession, Dimon also suggested that Washington should develop closer trade ties with countries such as India instead of asking them to align themselves with the US.
In his annual letter to shareholders released on Monday, Dimon called for a more cooperative global trade strategy—particularly with emerging economies like India and Brazil. “The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” he said, noting that market valuations still remain relatively high. “These significant and somewhat unprecedented forces cause us to remain very cautious.”
He also criticised the US’s lack of comprehensive trade agreements with many of its traditional partners adding that the tariffs risked dismantling US economic alliances across the globe.
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Instead of coercive policies, Dimon advocated for stronger trade and investment relationships with “non-aligned” nations. “We don’t need to ask many nonaligned nations, like India and Brazil, to align with us – but we can bring them closer to us simply extending a friendly hand with trade and investment.”
India and Brazil have already been impacted the new US trade stance. The Trump adminration has raised tariffs on Indian goods to 26 per cent and imposed 10 per cent duties on Brazilian exports.
“I am hoping that after negotiations, the long-term effect will have some positive benefits for the US. My most serious concern is how this will affect America’s long-term economic alliances,” Dimon said.
Dimon stopped short of naming individual countries, but warned that this kind of “fragmentation” could play straight into the hands of the US’s geopolitical rivals.Story continues below this ad

“If the western world’s military and economic alliances were to fragment, America itself would inevitably weaken over time,” he added. He said this was “precisely what our adversaries want”.
“The quicker this issue is resolved, the better, because some of the negative effects increase cumulatively over time and would be hard to reverse.”
Dimon added that even without a formal recession, the economy could still suffer a slowdown.
“The economy 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 said.Story continues below this ad
Dimon also warned that inflationary pressure may not be confined to imports. Rising input costs and disrupted supply chains could also push up prices at home. “We are likely to see inflationary outcomes, not only on imported goods but on domestic prices,” he said, pointing to the broader ripple effects on the economy.
However, on Monday, global stock markets suffered their third straight day of declines in reaction to Trump’s sweeping tariffs, which have prompted fears of a global trade war and a slowdown in economic growth – particularly in the US.
(With Inputs from Reuters)
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