FORMER REAGAN ECONOMIST DEFENDS TRUMP’S TRADERS TARIFF MOVE, SAYS A LITTLE INFLATION IS WORTH IT FOR NATIONAL SECURITY
JP Morgan Chase CEO Jamie Dimon has come to the defense of President Trump’s plan to impose a 25% tariff on Mexico and Canada, starting from February 1. Dimon, a renowned economist, expressed his views during an interview with CNBC’s Squawk Box. He argued that tariffs are merely an economic tool that can be used for national security purposes and that a minor increase in inflation would be bearable if it benefits the U.S.
During the interview, Dimon cited national security trumps (no pun intended) as the basis for accepting moderate inflation caused by tariffs. This is a striking departure from economists who traditionally hold tariffs in opposition. The current controversy surrounds concerns about potential hikes in import fees and potential rise in consumer product prices.
Former Reagan economist Arthur Laffer previously shared his disapproval of Mr. Trump’s trade policy strategies, highlighting uncertainty as the overarching issue. Similarly, some CEOs from leading consumer brands and services providers, JPMorgan includes, are beginning to sound in. Their arguments in support come with varying intensities and rationalities, causing concern.
Another prominent banker suggested a minor loss of income taxes may have outweighed gains caused by this administration. While one cannot accurately summarize, their actions seem quite aggressive and disconcerned.
However, even as uncertainty pervades the outlook for future commerce and investments there seems no substantial shift towards recession or market uncertainty.
However with that in our sights and on a final approach.
