CNBC's Squawk Box builds up excuses for Trump's inflationary tariff proposals
Jamie Dimon on tariffs: “If it is a little inflationary, but it's good for national security, so be it. I mean, get over it. National security trumps a little bit more inflation.”
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From the January 22, 2025, edition of CNBC's Squawk Box
ANDREW ROSS SORKIN (CO-ANCHOR): How do you feel now? Because you made a comment about a week ago where you said, not that you were cautiously optimistic about our economy. And there is, by the way, I think there is a lot of optimism by U.S. CEOs. But you said you were cautiously pessimistic. Why?
JAMIE DIMON (CEO, JPMORGAN CHASE): I was probably, I don't know where I said it, I was probably making a little bit of a joke. But I do have a little more caution around a bunch of subjects, OK? And, America is an unbelievable place. The growth is unbelievable. Pro-business growth is great, anti — getting rid of — I hate the word regulation because it sounds like we're trying to get away with something. But the bureaucracy, the whole American public knows the bureaucracy, it is extraordinary. And it has been allowed to blossom like a cancer all throughout our country, and it damages everybody quite a bit. And so what I am a little cautious about is the deficit spending. It is a global issue, not just an American issue. And the related, "Will inflation go away?" I'm not so sure. And what if rates go up? Credit spreads go up, you know, asset prices are already quite elevated. So, that's kind of one issue. But the really important one is geopolitics: It's Ukraine, Iran, Russia, North Korea, and the related role of China in that. And that just got me very concerned with how's going to affect our world for the next 100 years. Whether or not these things get resolved in the next couple of, in the next year or months or whatever.
SORKIN: Where do tariffs fit in? Because that's a topic here in Davos that everybody is talking about. Trump talked about tariffs just yesterday. Mary Erdoes, your colleague, was on stage talking about how your firm has created a quote-unquote "war room" that's looking at each of these executive orders as they come in, trying to assess what they mean for the bank and, I imagine, for your clients.
DIMON: Yeah, so we always — "war room" may be a bad word, but we always — this is a real-time, full thing analyzing for clients, for communities, for our banks where we get a million questions on stuff like that. I look at tariffs, they are an economic tool. That's it. They are an economic weapon, you know, depending on how you use it and why you use it and stuff like that. And people argue is it inflationary, not inflationary? I would put in perspective, if it is a little inflationary, but it's good for national security, so be it. I mean, get over it. National security trumps a little bit more inflation. But, I think it really — the question is how do they get used? Can they be used to bring people to the table? Yes. Is there some unfair trade? Yes. Is there state-owned subsidies? Yes. You know, is the president going use it that way and his team, yeah and we'll see. But, you know, how it gets played out, we will find out.