JPMorgan’s Jamie Dimon warns of ‘significant risks’ to US economy over Trump trade policies
JPMorgan CEO Jamie Dimon warned that President Trump’s trade policies pose “significant risks” to the US economy — even as the bank announced second quarter profits that were once again boosted by its trading.
Dimon, at the helm of JPMorgan for nearly two decades, reiterated that the commander-in-chief’s tariff plans could upend growth, while praising the passing of Trump’s Big Beautiful Bill.
“The US economy remained resilient in the quarter. The finalization of tax reform and potential deregulation are positive for the economic outlook,” Dimon said, also pointing to an uptick in the company’s investment banking profits.
“However, significant risks persist – including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices,” he added.
America’s biggest lender said its net income fell to $15 billion, down 17% from the same period last year.
This was due to a one-off $8 billion gain in 2024 from its stake in credit card provider Visa, the bank said.
JPMorgan’s second quarter profits are equal $5.24 a share, compared to the $4.48 a share forecast by analysts at the London Stock Exchange Group.
Trading revenue was up by 8% to $8.9 billion, with both equities and fixed income markets businesses seeing jumps.
The firm’s investment banking unit was also up 8% to $2.5 billion in the first signs that dealmaking doom and gloom is starting to lift on Wall Street.
Both divisions performed better than management’s earlier guidance.
In May, JPMorgan a mid-teens percentage drop in investment banking fees, while trading revenue was expected to grow by a mid-to-high single-digit percentage.
Dimon’s remarks came as many other Wall Street firms, including Citi, BlackRock and BNY, prepared to unveil their own financial results for the second quarter of 2025.
Investors will be scrutinizing how executives see the impact of tariffs and the tax and spending bill signed into law by President Donald Trump earlier this month.
Charlie-Scharf-led Wells Fargo, which saw a Federal Reserve-imposed asset cap lifted last month, cut its full-year guidance for net interest income.
The San Francisco-based lender posted $11.7 billion in net interest income — income from lending minus the cost of deposits — for the three months through June.
It fell just short of analysts’ estimates of $11.8 billion. That prompted Wells Fargo to lower its full-year NII growth target to little changed from last year.
This is a breaking news story. Check back for more updates.