Jamie Dimon: Recession a ‘Likely Outcome’ of US Tariffs

The CEO of America’s biggest bank says the country’s tariffs will likely trigger a recession.

In an interview Wednesday (April 9) with Fox Business’ “Mornings with Maria” show, JPMorgan Chase CEO Jamie Dimon called on the White House to make headway on negotiations with trading partners to ease the markets after days of turmoil.

Dimon urged fast progress on trade negotiations with U.S. trading partners in order to calm markets, which have been roiled by tariff announcements. If the situation persists, credit problems could worsen, he added.

“Are you seeing defaults?” asked program host Maria Bartiromo.

“Not yet, but I expect them,” Dimon said.

“Do you personally expect a recession?” Bartiromo continued.

“I think that’s probably a likely outcome,” Dimon added.

He said he was “taking a calm view … but I think it could get worse if we don’t make some progress here.”

Economists at the bank upped the chances of global recession during 2025 to 60% after President Donald Trump introduced new tariffs. Dimon also noted that initial public offerings (IPOs) were being called off due to the market upheaval.

“The bad part of these volatile markets is … what it does to the capital markets and the ability of companies to raise money. So IPOs are being canceled, a couple of hung deals out there in the high-yield land, bridge loans, and that just slows everything down,” he said.

Earlier this week, Dimon published his annual letter to the bank’s shareholders, in which he called for the tariff situation to be resolved quickly.

“The United States has had a rather healthy and steady economy for years, although it was already weakening as I began writing this letter — and that was before the recent tariff announcement,” Dimon said.

PYMNTS CEO Karen Webster examined the position U.S. businesses are in earlier this week, noting that supply chains that just recovered from COVID-era disruptions are likely to now face new levels of chaos thanks to the tariffs.

“Among middle-market businesses in the consumer and industrial goods industries, an overwhelming 89% expect shortages, delays and higher costs for materials,” Webster wrote Monday (April 7). “These businesses are doing the best they can to make lemonade out of tariff lemons, with 26% stockpiling inventory and negotiating with suppliers for better prices before the full effects take hold.”