JPMorgan CEO Warns Market Is Overlooking Risks from Tariff Tensions

Despite the S&P 500’s strong rebound, JPMorgan CEO Jamie Dimon believes investors may be ignoring warning signs that could spell trouble for the economy.

In a recent webcast, Dimon cautioned that enthusiasm in the markets might be masking deeper issues—particularly the long-term fallout of trade tariffs.

The market has rallied sharply, recovering 23% in just a few weeks, but Dimon sees this as a sign of complacency rather than resilience. According to him, the real economic consequences of renewed tariffs—like inflation and stagnation—have yet to be priced in.

“Markets are behaving as if tariffs don’t matter,” he said, suggesting that the threat of stagflation is greater than most assume. Tariffs, even at current levels, are already significant, and the full effect may still lie ahead.

READ MORE:

New Russian Law Would Classify Bitcoin as Seizable Property

Beyond inflation risks, Dimon pointed to growing geopolitical shifts. Countries affected by U.S. tariffs are increasingly forging new trade alliances, which could erode America’s influence in global markets. He also stressed that reshoring manufacturing won’t be a quick fix, noting that building new production capacity typically takes years.

As of the latest close, the S&P 500 sits at 5,940—well into recovery territory—but Dimon’s tone suggests the optimism might be premature.

Alexander Stefanov