Christine Lagarde and Jamie Dimon Warn of Risks to the Global Economy

Quick overview

ECB President Christine Lagarde and JPMorgan CEO Jamie Dimon warned of mounting risks to the global economy, criticizing U.S. President Donald Trump’s unilateral, tariff-driven approach, calling for greater cooperation among allies, and cautioning about the economic and financial fallout of his proposals.

Tensions between the United States and Europe were on full display at the World Economic Forum in Davos, where Lagarde and Dimon delivered pointed critiques of Trump’s political and economic strategy.

In an interview with French broadcaster RTL, Lagarde warned that “what is good for the United States is not necessarily good for the world,” arguing that the global economy is entering “the dawn of a new world order”—a shift that will force Europe to fundamentally rethink its economic structure and strategic positioning.

The ECB president took aim at Trump’s “transactional” approach, accusing him of deliberately raising the stakes in negotiations “to levels that are sometimes completely unrealistic,” referring to threats to impose tariffs of up to 200% on French wine and champagne. Such behavior, Lagarde said, is “very strange for an ally” and compels Europe to clearly define which tools it is willing to deploy, including its anti-coercion trade mechanism.

She emphasized that Europe’s response must be rooted in unity and collective resolve. “Once Trump redefines his position—something I hope will happen in his Davos speech—Europeans will be able to decide together how to respond,” she said, stressing that internal cohesion will be critical in the face of pressure from Washington.

Dimon: Tariff Criticism and Economic Warnings

Criticism of Trump’s agenda was not limited to European institutions. Jamie Dimon also voiced concerns during his appearance in Davos. The JPMorgan CEO said the United States “cannot act this way” toward Europe and argued that while Washington can be a partner in advancing shared goals, leadership for change must come from within Europe itself.

Dimon called for a more cohesive Western alliance, with a stronger NATO and European Union, and explicitly rejected tariffs as a policy tool. “I’m not a fan of tariffs in general,” he said, echoing Lagarde’s concerns about the broader consequences of an escalating trade conflict.

That said, Dimon expressed support for Trump’s stance on immigration, arguing that the U.S. “was right to reassert control over its borders,” and claiming that unchecked immigration had undermined social cohesion.

He also criticized the Trump administration’s proposal to cap credit card interest rates at 10%, calling it an “economic disaster.” If implemented, Dimon warned, up to 80% of Americans could lose access to credit, with direct repercussions for consumption and key sectors such as retail, tourism, and public services.

Finally, Dimon addressed the rapid advance of artificial intelligence, acknowledging its disruptive impact on employment. He suggested JPMorgan could have fewer employees within five years and urged policymakers and businesses to prepare for a technological transformation that, in his view, “could move too fast for society to absorb.”

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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