Former Reagan economist Art Laffer comments on Trump’s controversial economic plan to impose a 25% tariff on Mexico and Canada starting February 1.
JPMorgan Chase CEO Jamie Dimon said in a new interview that an uptick in inflation stemming from the Trump administration’s tariff plans would be worthwhile in the service of national security concerns.
Damon appeared “Squawk Box” on CNBC He said tariffs are an economic tool that can be used for a variety of reasons, and although they could cause inflation, that would be acceptable if it helped the United States achieve national security goals.
“I look at tariffs, they’re an economic tool, that’s all. They’re an economic weapon, depending on how you use them and why you use them and things like that,” Dimon said.
“People argue, ‘Is it inflationary, isn’t it inflationary?’ I would put it in perspective – if it’s a little bit inflationary, but it’s good for national security, so be it. I mean, get over it. National security gets a little over the top and said ‘more inflation.’
Jamie Dimon comments on Trump’s victory, and the policies his administration should focus on
Jamie Dimon, CEO of JPMorgan Chase, said inflation caused by tariffs that strengthen national security would be acceptable. (Aaron Schwartz/Xinhua via/Getty Images)
Dimon went on to say that how the Trump administration might use tariffs to achieve more favorable trade terms or address national security issues is a more important question than whether they will cause inflation.
“But I think the real question is how are they used. Can they be used to bring people to the table? Yes. Is there some unfair trade? Yes. Are there some state-owned subsidies? Yes. Is the president going to use it that way,” Dimon said. And his team? “Yes, we will see, but how it will be implemented – we will find out.”
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| JBM | JPMorgan Chase & Co | 263.03 | +3.87 |
+1.49% |
JPMorgan creates ‘war room’ to keep pace with Trump’s policy changes
President Trump campaigned on comprehensive tariff plans. (Bill Poliano/Getty Images)
president Donald Trump The election campaign aimed to impose comprehensive customs duties ranging from 10% to 20% on all imported goods, in addition to higher customs duties of up to 60% on goods imported from China.
Although he did not implement those tariffs during his first two days in office, Trump told reporters at the White House on Tuesday that he plans to start with a 10% tariff on China that will take effect at the beginning of February.
“We’re talking about a 10% tariff on China, based on the fact that they are sending fentanyl to Mexico and Canada,” Trump said. “Maybe February 1st is the date we’re looking at.”
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President Trump has said he plans to start by imposing a 10% tariff on China. (Kenny Holston/The New York Times/AFP via Getty Images)
Trump also signed an executive order after taking office on Monday titled “America First Trade Policy” that directed the Commerce and Treasury Departments to investigate the causes of the annual trade deficit and the risks they pose and to make recommendations on measures such as tariffs to address the trade deficit.
The order also charged those agencies along with the Department of Homeland Security (DHS) to design and implement Trump’s “External Revenue Service (ERS)” to collect tariffs, duties, and other revenues related to foreign trade.
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Trump intends for the ERS to collect tariff revenues from foreign sources, but economists have backed away from this goal, noting that US-based importers pay tariffs when their imported goods enter the country. These definitions are currently collected by U.S. Customs and Border Protection, a sub-agency of the Department of Homeland Security.
Fox News Digital’s Greg Norman contributed to this report.