JPMorgan Chase CEO Jamie Dimon has changed his tune on tariffs, saying Wednesday that they're a valuable economic tool.
"They're an economic weapon, you know, depending how you use it why you use it, stuff like that," Dimon told CNBC's Andrew Ross Sorkin at the World Economic Forum.
"Tariffs can change the dollar, but the most important thing is growth," he added.
Why It Matters
Dimon's comments were a stark departure from his previous warnings about the threat of imposing tariffs, which comprise a key pillar of President Donald Trump's economic and trade agenda.
Dimon's praise for Trump's trade policy was also noteworthy given his past criticism of the president.
"I think I could beat Trump" in an election, Dimon said at a JPMorgan Chase event in 2018. "Because I'm as tough as he is, I'm smarter than he is. I would be fine."
What To Know
Dimon's comments Wednesday come as Trump has threatened to impose a 25 percent tariff on products from Mexico and Canada by February 1 and a 10 percent tariff on Chinese imports.
Earlier Wednesday, Trump also teased the notion of imposing "taxes, tariffs, and sanctions" on Russia if it doesn't end its war against Ukraine.
"Settle now, and STOP this ridiculous War!" the president wrote on Truth Social.
Trump campaigned on the promise of tariffs, saying they would stop other countries from taking advantage of the U.S. and benefit American consumers. But most economists say tariffs would hurt both the U.S. and the economies of countries that are targeted.
What Did Jamie Dimon Say About Tariffs at Davos?
Dimon appeared open to imposing tariffs on Wednesday.
"If it's a little inflationary, but it's good for national security, so be it," the JPMorgan chief said.
"I mean, get over it," he added. "National security trumps a little bit more inflation."
Dimon also said tariffs could "bring people to the table" to address economic issues, adding, "We'll see how it gets played out. We're going to find out."
Newsweek reached out to a company spokesperson for comment via email Wednesday.
What Has Jamie Dimon Said About Tariffs in the Past?
In 2018, Dimon urged caution when the Trump administration was weighing a second round of tariffs on China, saying that the move could threaten the U.S. economy.
"If you do another $200 billion of tariffs and this national security thing about cars, I think you're getting pretty close to reversing some of the benefits you've seen in the economy," the JPMorgan Chase chief executive told CNN.
The Trump administration had, at the time, already placed tariffs on $34 billion of Chinese goods and China responded with retaliatory tariffs.
"I would remind folks that the president's team has already said there will be no retaliation," Dimon told CNN. "They've already been wrong. If I was the president, I'd be a little ticked off at some of my advisers, to tell you the truth."
The Wall Street executive doubled down on his warnings in 2019, saying tariffs "wouldn't be a positive" for the U.S.
What People Are Saying
Dimon praised SpaceX CEO Elon Musk, with whom he had a previously fraught relationship, saying at Davos: "SpaceX, Tesla, Neuralink, I mean, the guy is our Einstein."
Dimon also weighed in on Trump winning a second term, telling CNBC's Squawk Box: "Respect the voter. The problem with putting a voter in a box is the voter may be voting for completely different reasons than you think."
What Happens Next
If Trump follows through on his threat, the U.S.'s tariffs on Mexico, Canada and China will take effect on February 1. Doug Ford, the premier of Ontario, said Canada is prepared to respond, telling The Associated Press, Trump "declared an economic war on Canada. And we are going to use every tool in our tool box to defend our economy."
Canada's outgoing prime minister, Justin Trudeau, also said the country is ready to retaliate if needed but noted that Canada was in a similar position during Trump's first term and successfully negotiated a trade deal to avoid the tariffs.
Mexican President Claudia Sheinbaum emphasized that she would defend Mexico's "sovereignty and independence" but has so far held off on threatening retaliatory tariffs.
China also said it would defend its "national interests" in the face of Trump's saber-rattling and foreign ministry spokesperson Mao Ning said that "we have always believed that there are no winners in a trade war or a tariff war," according to AFP.
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