Tariff Troubles: Wall Street Warns of 'Economic Nuclear Winter'

Wall Street executives express concern about U.S. tariffs, warning of severe economic impacts. Jamie Dimon, JPMorgan's CEO, highlights potential inflation and recession risks. Bill Ackman worries about damaging business confidence. There's a 60% chance of U.S. recession due to new trade barriers, as markets brace for turmoil.

Wall Street leaders sounded alarms over U.S. tariffs, with JPMorgan Chase CEO Jamie Dimon cautioning against potential long-term negative effects. In his recently published annual letter to shareholders, Dimon expressed apprehension about the consequences tariffs might have on America's economic alliances.

The world witnessed significant turmoil last week, with trillions lost across global stock markets. Billionaire fund manager Bill Ackman, once a Trump supporter, voiced concerns, suggesting that such tariffs could trigger an 'economic nuclear winter.' Ackman called for a pause and renegotiation of trade deals.

Amidst these concerns, JPMorgan's economists elevated the risk of a U.S. recession this year to 60%. The stock market's downturn, coupled with high fiscal deficits and elevated asset prices, only adds to the sense of urgency for a swift resolution.

(With inputs from agencies.)