JPMorgan Chase Stock Plunges 3.03% Amid Trump Tariff Fears

On April 4, 2025, JPMorgan Chase's stock experienced a significant drop of 3.03% in pre-market trading, reflecting investor concerns over the potential economic impact of recent policy changes.

JPMorgan Chase's stock decline can be attributed to the heightened risk of a global economic recession, as warned by the bank's chief economist, Bruce Kasman. The primary concern stems from President Trump's newly announced "Liberation Day Tariffs," which impose a 10% base tariff on all imports to the U.S. and higher rates on 60 countries with trade surpluses. This policy is seen as a major threat to global economic stability, with potential repercussions including trade retaliation, a collapse in business confidence, and disruptions in supply chains.

Kasman's report highlights that the tariffs effectively act as a tax increase on American households and businesses, potentially raising the average U.S. tax rate by approximately 22 percentage points. This level of taxation is comparable to the most severe fiscal tightening since World War II, with the potential to trigger a recession if sustained. The report also notes that the tariffs could lead to price increases across a wide range of goods, from daily necessities to large consumer items, further straining the economy.

Investors are closely monitoring the situation, hoping for a policy reversal in the coming weeks. However, JPMorgan Chase has cautioned that the economic damage from these tariffs could be long-lasting if the current policy direction is maintained.