Jamie Dimon says US should strengthen allies economically, in veiled criticism of Trump | Economics
The head of America’s largest bank has pressed the White House to economically strengthen America’s allies to “avoid really negative consequences” in the latest chapter of an increasingly tense relationship with the Trump administration.
As the Middle East conflict sparked by U.S. and Israeli attacks on Iran enters its sixth week, Jamie Dimon, chairman and chief executive of JP Morgan Chase, said in his annual letter to shareholders that “good” U.S. foreign policy should put America first, “though not alone.”
His remarks certainly appear to be a criticism of Donald Trump, who announced in January that he would sue the banker and Wall Street establishment for at least $5bn (£3.8bn) after accusing him of “de-banking” him.
The comments also came five days after Trump told governments to forcibly “take your own oil” from the Gulf; because transatlantic relations worsened due to rising energy prices as a result of the war.
Some economists have warned that a prolonged conflict could push oil prices above $170 a barrel, triggering a global recession.
Dimon wrote: “The economic weakening of the world’s democracies, or the disintegration of their economic ties, could have truly negative consequences. This is exactly what some of our enemies and many autocratic nations want – their stated goal.”
“They want to see all of our allies become much less dependent on the United States, and therefore much more dependent on them. In this scenario, many countries will have to seek deeper economic ties with some possible bad actors; over time, they may become vassals of these countries and not be able to avoid pressure from them.”
Dimon, a lifelong Democrat, was initially thought to have a surprisingly close relationship with Trump during the president’s first term; The banker reportedly turned down an offer to lead the US Treasury department during this administration.
But the Wall Street tycoon appears to have become increasingly at odds with the White House since then, addressing speculation about his own presidential ambitions in 2018. He spoke at a panel in New York: “I think I can beat Trump… because I’m as tough as him, smarter than him… And by the way, this rich New Yorker actually made his money. This wasn’t a gift from my father.”
Dimon’s annual letter to shareholders Spanning almost 50 pages and containing more than 20,000 words of text and accompanying graphics, it is a highly anticipated event on Wall Street.
Continuing his theme, the banker also criticized Trump’s tariff regime, one of the landmark policies of his second term, which resulted in goods imported into the US facing increased tariffs even if they came from traditional allies and established trading partners.
“While tariffs have certainly ‘brought people to the table’ and allowed us to correct some of our past poor trade practices, we need to take a comprehensive look at U.S. foreign economic policy,” Dimon wrote. “Our foreign economic policy should not only help us grow as a nation, but also help other countries grow.”
JP Morgan’s boss also warned of possible challenging scenarios for the global economy. In addition to highlighting the threats and opportunities of AI, he wrote, “The bad smell in the party – and this could happen in 2026 – is that inflation will slowly rise rather than slowly fall.”
“I don’t think it would be an exaggeration to say that artificial intelligence will cure some cancers or create new composites. [for uses in manufacturing] and will reduce accidental deaths, among other positive outcomes,” he wrote. “It will eventually shorten the working week in the developed world. And people will live longer and safer.”
