Chicago – April 08, 2025
For the third straight day, stock markets experienced major fluctuations as the U.S. prepares to implement broad new tariffs starting Wednesday. Now, several top figures on Wall Street are sounding alarms about potential economic fallout.
Although the business world has largely refrained from openly criticizing former President Trump and has supported his initiatives like tax cuts and deregulation, the ongoing market downturn seems to have prompted more outspoken reactions. Jamie Dimon, CEO of JPMorgan Chase and a major Wall Street voice, warned Monday that these tariffs could lead to higher prices, slower economic growth, and damage to the U.S.’s global reputation.
In his annual letter to shareholders, Dimon wrote, “The sooner this issue is resolved, the better, as some of the damage could accumulate over time and become difficult to undo.” He likened the tariffs to “one large additional straw on the camel’s back.”
Although JPMorgan’s top economist predicted last week that the tariffs could push the U.S. into a recession this year, Dimon himself stopped short of that conclusion, saying it’s still unclear. However, he emphasized his deeper worry is the long-term impact on America’s economic alliances.
Dimon has previously expressed moderate concerns about Trump’s trade strategy, once saying, “Uncertainty is not a good thing,” at a recent conference.
Meanwhile, Goldman Sachs increased its estimate of a potential U.S. recession from 35% to 45%, citing worsening financial conditions, foreign consumer pushback, and growing uncertainty that could curb business investment more than previously expected.
Asked about the market turmoil on Sunday, Trump dismissed concerns with a sharp response, saying some short-term pain might be necessary for long-term fixes. He added that he didn’t expect inflation to significantly impact back-to-school shoppers later this year.
Still, even staunch Trump allies in the financial world are voicing concerns. Hedge fund billionaire Bill Ackman, who supported Trump in last year’s election, posted a lengthy thread on X calling the tariffs “economic nuclear war on every country in the world.”
Ackman warned that the trade war could reduce consumer spending and choke off investment, especially for small and mid-sized businesses. “Business is a confidence game,” he said, adding that Trump is losing the trust of business leaders globally.
Instead of imposing sweeping tariffs, Ackman urged Trump to declare a 90-day pause to renegotiate unfair trade terms and attract significant investment into the U.S. economy.
