Jamie Dimon on economic policies
Import tariff and its impact
In earlier interviews, we saw that Dimon expected the US (SPY) and China (FXI) trade conflict to soon lead to negotiations. He said in his annual letter in April, “Retreating from the world is not the solution, nor is burning down the current system and starting anew. Ceding America’s leadership role on the world stage is a bad idea for everyone—inside and outside our great land.”
The stable trade relationship between the world’s two largest economies is necessary for the global economy. However, in June, President Trump escalated the import tariff on Chinese goods and heightened trade tensions.
Dimon believes that if the US continues its import tariffs against China, it will affect economic growth. He said, “If you do another $200 billion of tariffs and this national security thing about cars, I think that you’re getting pretty close to reversing some of the benefits you’ve seen in the economy.”
Trump announced last week that he might impose a further import tariff on $505.5 billion in Chinese goods if the United States doesn’t receive any concession on the Chinese tariff. According to Dimon, if this happens, it could significantly affect the US economic boom.
In the next part of this series, we’ll analyze Steve Bannon’s view of the US–China trade war.