Jamie Dimon Warns Trump’s Trade Policies Could Harm U.S. Credibility 🚨

Jamie Dimon, CEO of JPMorgan Chase, has cautioned that President Trump’s trade war could damage the United States’ national credibility. Here’s the scoop:

Key Points:

• Erosion of Trust: Dimon suggests that the ongoing trade disputes and tariffs could undermine the U.S.’s reputation as a safe haven for investors.
• Economic Impact: The trade war could potentially lead to an economic downturn, affecting not just the U.S. but the global economy.
• Call for Dialogue: Dimon urges the Trump administration to engage in immediate talks with China to resolve the trade tensions.
• Importance of Allies: He emphasizes the need for the U.S. to work with allies like Europe, the UK, Japan, South Korea (南韓 – refers to South Korea), Australia, and the Philippines to build strong economic cooperation.

Dimon’s Concerns:

Dimon highlighted that while the U.S. is seen as a ‘risk-off haven’ due to its prosperity, rule of law, economic strength, and defense, Trump’s efforts to reshape the global trade system could jeopardize this status. He noted that the uncertainty caused by the trade war is a threat to U.S. credibility and that people need to regain trust in the United States.

Market Reaction:

The wavering international view of U.S. credibility was partly reflected in the decline of Treasury yields last week. Investors, doubting the U.S.’s long-standing status due to Trump’s tariff policy confusion and regulatory attacks, sold U.S. Treasury bonds, causing the 10-year Treasury yield to soar to its highest level in decades.

Call to Action:

Dimon warned that the U.S. needs to be cautious and that no one is entitled to success. He criticized Trump’s administration’s aggressive moves, especially the imposition of reciprocal tariffs worldwide, deeming it excessive.

Trade War Impact:

Dimon pointed out that when the ‘day of liberation’ tariffs were announced, they were dramatically different from what people expected, shocking not only the U.S. but the global system. While the markets mostly handled the volatility, the uncertainty caused fear among investors.

Urgent Dialogue Needed:

Dimon urged the Trump administration to engage in urgent talks with China to resolve the trade war, emphasizing that there seems to be no dialogue currently and that it should start immediately.

Dimon’s Shifting Stance:

While Dimon has generally been positive about Trump’s policies, he has recently shown signs of criticism, warning about the possibility of a global economic downturn due to tariff policies in a letter to shareholders.

Stay informed and keep an eye on these developments! 🧐