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JPMorgan CEO Jamie Dimon has issued a stark warning about President Donald Trump’s tariff policy, stating that it could lead to higher prices, a global economic slowdown, and a weakening of America's position on the world stage.

In his annual letter to shareholders, Dimon explained that the recent tariffs are likely to drive up inflation and are contributing to growing concerns about the possibility of a recession. “Whether or not the tariffs directly cause a recession is uncertain, but they will certainly slow down economic growth,” Dimon wrote.

According to CNN , As one of the world’s most influential business leaders, Dimon highlighted the importance of America’s “extraordinary standing,” which he said has been built on the country’s economic power, military strength, and moral leadership. However, he warned that tariffs and Trump’s “America First” policy could undermine this global leadership.

“America First is acceptable, as long as it doesn’t turn into America alone,” Dimon stated. He cautioned that if the Western world’s military and economic alliances were to fragment, America would weaken over time.

Dimon also emphasized the interconnectedness of security and economics. “It is crucial to recognize that economic and security issues are closely linked—economic warfare has historically led to military conflicts,” he wrote.

In previous letters, Dimon has expressed concerns about geopolitical risks, such as the wars in Ukraine and the Middle East, which he warned could shake the global economy. However, he has rarely been as direct in his criticism of a specific U.S. economic policy.

Although Dimon had been relatively silent on Trump’s tariffs since his January CNBC interview, where he suggested that if the tariffs boosted U.S. manufacturing and led to some inflation, people should "get over it," his tone has changed. In this letter, Dimon acknowledged that while “damaging trade practices,” particularly from China, have hurt workers, Trump’s tariffs are more severe and widespread than expected, signaling a potential economic downturn.

Despite recent market declines, Dimon warned that stocks could fall much further. The U.S. stock market, which hit an all-time high on February 19, is now teetering near bear market territory, marking what could be the second-fastest peak-to-bear market shift in history, following the 2020 pandemic crash.

“Even with the recent market decline, prices remain relatively high,” Dimon noted. “These powerful and unprecedented forces make us extremely cautious.”

For much of the past year, Dimon had maintained an optimistic view of the U.S. economy, which he described as resilient, with consumers still spending and businesses remaining strong. However, he now strikes a more cautious note, acknowledging the significant geopolitical and financial challenges facing both the United States and the world.

“We are facing the most dangerous and complex geopolitical and economic environment since World War II,” Dimon concluded.