The head of America’s largest bank has ridiculed President Donald Trump’s negotiating tactics with China, saying the country is not likely to bow to U.S. pressure.
“I just got back from China last week. They’re not scared, folks,” Dimon told a crowd of politicians, executives, and economists at the Reagan National Economic Forum in California on Friday, Axios reports. “I would engage with China.”
Trump has been battling a trade war with the Asian giant in recent months, imposing tariffs of up to 145% on the importation of Chinese goods into the U.S. market. However, a “fast-deal” was struck with the country earlier this month, which reduced China’s retaliatory tariffs from 125 percent to 10 percent while U.S. tariffs were lowered to 30 percent. The deal is scheduled to last just 90 days while the two sides attempt to work out their differences.
“This notion they’re going to come bow to America, I wouldn’t count on that,” Dimon continued. “When they have a problem they put 100,000 engineers on it. They’ve been preparing for this for years.”
Treasury Secretary Scott Bessent has been insistent that China needs the U.S. far more than America needs them and has no choice but to return to the negotiating table. However, Chinese President Xi Jinping has been less than enthusiastic about capitulating to America’s demands, suggesting he is happy to call Trump’s bluff.
“I believe that it’s up to China to de-escalate, because they sell five times more to us than we sell to them. And so these 120 percent, 145 percent tariffs are unsustainable,” Bessent told CNBC in April.
American-Chinese trade was worth an estimated $582.4 billion in 2024, with the U.S. importing $438.9 billion from the country while sending $143.5 in the opposite direction. This has resulted in a $295 billion trade deficit with America’s third largest trading partner, the largest of any nation. While that deficit is at its lowest since 2009, Trump has repeatedly made calls to get it down further.
“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” Trump wrote on Truth Social on Friday. The outburst over alleged Chinese violations of the deal to mutually roll back tariffs and restrictions on critical minerals suggests the easing of tensions in the trade war is deteriorating.
China has been working for years to reduce its reliance on the U.S, expanding exports to Europe, Oceania, and other major markets. Its positioning, and the current trend of U.S. leadership, has financial experts like Dimon concerned.
“What I really worry about is us. Can we get our own act together—our own values, our own capability, our own management,” the CEO stated, arguing that America is usually “normalcy resilient” but that the current situation is unprecedented.
“We have to get our act together,” Dimon said. “We have to do it very quickly.”
