President Donald Trump has signaled the possibility of new tariffs taking effect on February 1, with proposed rates of 10% on China and 25% on Canada and Mexico. These tariffs come as part of a comprehensive review of the tri-party agreement negotiated by Trump during his first term, known formally as the US-Mexico-Canada Trade Agreement (USMCA). The review of this agreement is scheduled for July 2026. Since assuming office on Monday, Trump has increased rhetoric around tariffs, particularly in response to the significant trade deficit the US holds with the European Union (EU), totaling $214 billion through November 2024.
Trump has been vocal about his perception that the EU's substantial trade surplus with the US is detrimental, asserting that the EU is treating the US "very, very badly." In this context, leading financial figures like JPMorgan Chase CEO Jamie Dimon and Goldman Sachs CEO David Solomon have expressed measured support for the tariffs, viewing them as potentially beneficial economic tools.
"If it's a little inflationary, but it's good for national security, so be it. I mean, get over it," – Jamie Dimon
Jamie Dimon sees tariffs as strategic instruments that could safeguard American interests and potentially bring trading partners back to negotiations for more favorable trade agreements. Despite concerns over inflation, Dimon emphasizes that national security takes precedence over minor economic fluctuations.
"National security trumps a little bit more inflation." – Jamie Dimon
Dimon elaborates that tariffs should be regarded as an economic mechanism with varying applications depending on their intended use and strategic objectives.
"I look at tariffs, they're an economic tool, That's it," – Jamie Dimon
"They're an economic weapon, depending on how you use it, why you use it, stuff like that." – Jamie Dimon
Echoing similar sentiments, Goldman Sachs CEO David Solomon suggests that business leaders have been anticipating policy shifts, including those related to international trade. Solomon believes that these changes could ultimately prove advantageous if they lead to more balanced and beneficial trade agreements.
Despite the looming threat of tariffs, the US dollar has experienced a slight decline this week. Inflation has remained below 2.5% annually throughout Trump's first term, suggesting some stability amidst economic shifts.
"Tariffs can change the dollar, but the most important thing is growth," – Jamie Dimon
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