Global markets turmoil: JPMorgan and EU leaders warn on tariffs
Global markets continue to decline following Donald Trump's announcement of new import tariffs. JPMorgan's CEO, Jamie Dimon, warns of rising prices and potential harm to the global economy. An expert points out that the only uncertainty remaining is the extent of the damage.
Donald Trump's decision to introduce new import tariffs has caused significant upheaval in global financial markets. The Nikkei 225 index has entered a bear market, and European stock markets experienced another day of declines. In the morning, losses were more pronounced, but as the day progressed, they began to stabilise.
We will learn about the condition of the American market at 2:30 PM Greenwich Mean Time, when trading starts in New York.
JPMorgan CEO warns
Jamie Dimon, CEO of JPMorgan, warned that Trump's tariffs are likely to lead to price increases in the United States in the short term and pose the risk of long-term harm to the global economy.
The quicker this issue is resolved, the better, Dimon said in his commentary, expressing concern about the potential consequences of escalating trade tensions.
Der Leyen reacts to US tariffs
Ursula von der Leyen, President of the European Commission, met on Monday with representatives of the steel and metal industries to discuss the consequences of US tariffs.
During the meeting, there was a strong emphasis on the pressing need for the EU to introduce fresh trade defence instruments for the steel industry, extending beyond the current safeguard measures set to expire in June 2026, and addressing the possible diversion of exports from other major steel-producing nations into the EU market.
Trump prepares a new offensive
Meanwhile, Republicans are speeding up work on a tax cut package, Trump's flagship project. The Senate made significant progress on this matter on Saturday morning, but most experts do not consider tax measures sufficient to prevent a recession if the economy follows the path set by the trade war.
Trump himself seems to grasp this, as he posted on the Truth Social platform a call for the Federal Reserve to lower interest rates, claiming at the same time that "there is no inflation."
A former ally criticises Trump
US trade policy decisions have been met with criticism from billionaires in the hedge fund industry, including Bill Ackman and Stanley Druckenmiller. Ackman, once a vocal supporter of Trump, called the tariffs a "mistake."
The billionaire suggested that Trump should pursue negotiations aimed at resolving any potential unfairness in trade agreements.
Alternatively, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down, warned the investor.
Bill Dudley, the former president of the Federal Reserve Bank of New York, cautioned that the Federal Reserve is unlikely to shield the economy from the impact of Trump's tariffs. He noted that the key concern at this point is the extent of the damage they will cause.
