Former Reagan economist Art Laffer weighs in on Trump’s controversial economic plan to impose 25% tariffs on Mexico and Canada effective February 1.
The CEO of JPMorgan Chase, Jamie Dimon, said in a new interview that the slight increase in inflation caused by the tariff plans of the Trump administration will be useful in providing for national security concerns.
Dimon appeared on CNBC’s “Squawk Box” and said that tariffs are an economic tool that can be used for a variety of reasons, and that although they may cause inflation, that would be acceptable if it helps the US meet national security goals.
“I look at prices, they’re an economic tool, that’s all. They’re an economic tool, depending on how you use it and why you use it and things like that,” Dimon said.
“People are arguing, is it inflation, is it not inflation? I can put it in my mind – if it rises a little, but it is good for the security of the country, so be it. I mean, pass. inflation is very small,” he said.
JAMIE DIMON WEIGHS ON TRUMP’S VICTORY, THE POLICIES HIS ADMIN SHOULD FOCUS ON.
The CEO of JPMorgan Chase, Jamie Dimon, said that inflation caused by the cost of increasing national security would be acceptable. (Aaron Schwartz/Xinhua via / Getty Images)
Dimon went on to say that how the Trump administration can use rates to pursue favorable trade terms or address national security issues is a more important question than whether it will cause inflation.
“But I think really, the question is how are they used. Can they be used to bring people to the table? Yes. Are there unfair trades? Yes. Are there government subsidies? Yes. Is the president going to go? use it that way with his party, and we’ll see how it plays out – we’ll find out ,” Dimon said.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 263.03 | +3.87 |
+1.49% |
JPMORGAN SETS UP ‘WAR ROOM’ TO KEEP UP WITH TRUMP’S POLICY CHANGES
President Trump campaigned on sweeping tariff plans. (Bill Pugliano/Getty Images)
President Donald Trump has campaigned for tariffs across the board of 10% to 20% on all imports, as well as tariffs as high as 60% on goods 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 in early February.
“We’re talking about a 10% tariff on China, based on the fact that they export fentanyl to Mexico and Canada,” Trump said. “Maybe Feb. 1 is the date we’re looking at.”
TRUMP’S RECOMMENDATIONS TO MEXICO, CANADA: COMPANIES WONDERING ALARMS
President Trump has said he plans to start with 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 Departments of Commerce and Treasury to investigate the causes of annual trade deficits and the risks they pose and make recommendations on actions such as tariffs to correct the trade deficit.
The order also directed those agencies and the Department of Homeland Security (DHS) to create and use Trump’s “External Revenue Service (ERS)” to collect taxes, duties, and other revenues related to foreign trade.”
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Trump intends for the ERS to collect tax revenue from foreign sources, but economists have dismissed that goal, noting that US-based traders pay the tax when their imported goods enter the country. Those fees are currently collected by US Customs and Border Protection, a subsidiary of DHS.
Fox News Digital’s Greg Norman contributed to this report.
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