'Wall Street Emperor' Dimon: "Trump's Trade War Lowers US Credibility"

"Tariffs Deliver Major Shock to Global Economy... Need for Dialogue with China"
Calls for Economic Cooperation with Allies Including Europe and Korea

'Wall Street Emperor' Jamie Dimon, CEO of JPMorgan Chase, warned that U.S. President Donald Trump's trade war risks undermining the United States' national credibility.

On the 15th (local time), Dimon told the Financial Times (FT) in an interview that although the U.S. is considered a 'safe zone' thanks to its prosperity, rule of law, economic and military power, President Trump’s attempts to reshape global trade could threaten this economic advantage.

Jamie Dimon, CEO of JPMorgan Chase. Photo by Reuters Yonhap News

Dimon said, "This uncertainty is posing a significant challenge to us," adding, "Until tariffs and the trade war calm down and end, and people say 'You can trust America,' you will keep hearing this news constantly."

The U.S. has imposed a total tariff of 145% on China, and China has retaliated with a 125% counter-tariff. Dimon urged both the U.S. and China to communicate with each other. He said, "It seems there is no communication happening right now," but added, "We don’t have to wait a year; it could start as soon as tomorrow."

On the 2nd, known as 'Liberation Day,' President Trump announced reciprocal tariffs, triggering a global trade war and causing extreme volatility on Wall Street. Investors fled U.S. government bonds en masse, and the yield on 10-year U.S. Treasury bonds surged. As President Trump changed trade policies and attacked regulatory agencies, some investors questioned the U.S.'s role as a leading global market.

Dimon warned the Trump administration, saying, "We need to be careful. No one should take for granted that they are born with a sacred right to succeed." He noted that although the markets were disorderly after the tariff announcement on the 2nd, most markets were okay, but volatility increased, making people uneasy. He also assessed the reciprocal tariff announcement as delivering a major shock not only to the U.S. but to the global system.

Dimon criticized the Trump administration’s tariff system, saying, "I think we need to be clear about what we are trying to achieve." He added, "I believe we should do this (U.S. goals) together with allies," emphasizing, "Ultimately, we need to negotiate with Europe, the UK, Japan, Korea, Australia, and the Philippines to build a very solid economic cooperation relationship."

Dimon, who was mentioned as a strong candidate for Treasury Secretary before the Trump administration took office, spoke about Treasury Secretary Scott Vestment, saying, "I know him somewhat. He is a mature person," and evaluated him as "the right person to handle trade negotiations, even though I don’t agree with everything the Trump administration does."

Dimon is considered one of the most influential figures on Wall Street. After Dimon warned last week that the economy could enter a recession due to tariff policies, President Trump decided to halt most reciprocal tariffs. While Dimon had previously expressed a positive stance on President Trump’s policies, he recently showed a critical attitude by warning in a shareholder letter about the possibility of a global economic downturn caused by tariff policies.