Jamie Dimon warns tariffs need quick resolution as banks up recession risk

No longer telling people to get over it. The CEO of America's largest bank warns tariffs are putting

a heavy load on an already weakening economy. JPMorgan Chase CEO Jamie Dimon is one of the

most influential voices in finance. In his annual letter published Monday, he warned President

Donald Trump's tariff policies will increase inflation and the likelihood of a recession

Dimon wrote that the new tariff policies are injecting a lot of uncertainty, potential retaliatory actions, effect on confidence, impact on investments and capital flows

and possible effects on corporate profits and the U.S. dollar. The quicker this issue is resolved, the better, because some of the negative effects increase

cumulatively over time and would be hard to reverse. In the short run, I see this as one

large additional straw on the camel's back, he wrote. Will it be the straw that breaks the camel's

back. Diamond's own bank is projecting a 60 percent chance of a global recession by the end of the

year, up from 40 percent previously forecast. Meanwhile, Goldman Sachs is also upping its

recession chances to 45 percent from 35 percent. That's the second hike in just one week. Stocks

around the world are getting hammered by the threat of a large scale trade bore. In the U.S.

equities are having some of the worst trading days since 2020. The S&P 500, a weighted index of the

500 largest companies listed in the U.S. traded in bear market territory on Monday after falling

more than 20 percent from the record high hit in February. Overseas, stocks in Asia got battered on

Monday. Hong Kong's Hang Seng Index had its worst trading day since the 1997 Asian financial crisis

falling 13.2 percent. I don't want anything to go down, but sometimes you have to take medicine

to fix something." Trump has previously refused to rule out the chance his tariff policies will cause a recession saying the U is facing a period of transition Diamond was no fan of Trump affinity for tariffs during the president first term in the White House He said they were a threat to the economy But as Trump took office for a second

term in January, Diamond had a fresh take while talking with CNBC at the World Economic Forum in

Davos, Switzerland. They are an economic tool. That's it. They're an economic weapon, you know

depending on how you use it and why you use it and stuff like that. And, you know, people are

is inflationary and non-inflationary. I would put in perspective if it's a little inflationary

but it's good for national security. So be it. I mean, get over it. He said at the time

the outcomes depend on how the tariffs are implemented. In his letter Monday

Diamond still gives credence to legitimate reasons to overhaul trade policy, but he issued a few warnings about the severity and the targets

Economic fragmentation from our allies may be disastrous in the long run, he wrote

Keeping our alliances together, both militarily and economically, is essential. The opposite is precisely what our adversaries want

In the short term, Diamond said the country is likely to see inflationary outcomes

not only on imported goods, but on domestic prices, as input costs rise and demand increases on domestic products

The White House announced more than 50 countries have contacted the administration to negotiate trade

Meanwhile, the EU says it is ready to negotiate a tariff pact with the U.S. that reduces or eliminates penalties from either side

But leaders also say the EU stands ready to defend its trade interests

Trump is threatening an additional 50 percent tariff on China if the country doesn't remove its 34 percent retaliatory tariffs on the U.S

Trump also says he'll break off all negotiations with the country without that removal

The developments are moving fast. To stay on top of the latest tariff news, be sure to download the SAN app and enable notifications

For Straight Air News, I'm Simone del Rosario