Former Reagan economist Art Laffer examines Trump's controversial economic plan to impose 25 percent tariffs on Mexico and Canada starting February 1.
CEO of JPMorgan Chase Jamie Damon In a new interview, he said that the slight increase in inflation caused by the Trump administration's tariff plans is valuable in serving national security concerns.
Damon appeared CNBC's “Squawk Box.” And he said tariffs are an economic tool that can be used for a variety of reasons, and while they can cause inflation, they are acceptable if they help the United States achieve national security goals.
“I look at tariffs, they're an economic tool, that's all. They're an economic weapon, depending on how you use it and why you use it and things like that,” Dimon said.
“People argue, is it inflationary, is it not inflationary? I put it in perspective — if it's a little inflationary, but it's good for national security, so be it. I mean, get over it. National security wins a little bit.” “Inflation increased a little.”
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JPMorgan Chase CEO Jamie Dimon said inflation from tariffs that bolster national security is acceptable. (Aaron Schwartz/via Xinhua/Getty Images)
Damon went on to say that a Trump administration is possible Use tariffs Pursuing more favorable terms of trade or addressing national security issues is a more important question than whether they cause inflation.
“But I think really, the question is how do they get used. Can they be used to bring people to the negotiating table? Yes. Is there unfair trade? Yes. Is there some government subsidy? Yes. Is the president going to use that way and his team, yes, and we'll see how that goes – we want to find out.
| ticker | security | the last | change | change % |
|---|---|---|---|---|
| JPM | JPMorgan Chase & Co. | 263.03 | +3.87 |
+1.49% |
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President Trump launched extensive tariff plans. (Bill Poliano/Getty Images)
the president Donald Trump The campaign to impose comprehensive tariffs between 10 and 20 percent on all imported goods, as well as higher tariffs of up to 60 percent on goods imported from China.
While Trump did not implement the tariffs in his first two days in office, he told reporters at the White House on Tuesday that he plans to do so with a 10% tariff on China which will be implemented from the beginning of February.
“We're talking about a 10 percent tariff on China, based on the fact that they're sending fentanyl to Mexico and Canada,” Trump said. “Probably February 1 is the date we're looking at.”
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President Trump has said he plans to start by imposing a 10 percent tariff on China. (Kenny Holston/New York Times/AFP via/Getty Images)
After taking office on Monday, Trump also signed an executive order titled “America First Trade Policy,” which directed the Commerce and Treasury departments to examine the causes of annual trade deficits and their risks, and recommended measures such as tariffs on Provide solutions to trade deficits.
The order also directed those agencies and the Department of Homeland Security (DHS) to “design and implement Trump's Foreign Revenue Service (ERS) to collect tariffs, duties, and other revenues related to foreign trade.”
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Trump plans to have the ERS collect tariff revenue from foreign sources, but economic experts have pushed back on that goal, noting that the U.S.-based Importers pay tariffs When their imported goods enter the country. These tariffs are currently collected by US Customs and Border Protection, a subsidiary agency of DHS.
Fox News Digital's Greg Norman contributed to this report.