June 6 (Lagos) - Jamie Dimon, Chairman of JP Morgan and probably the most respected banker of our times and an industry veteran made some remarks regarding how the current US Government is dealing with China and that their attitude should change because according to him China is not scared of a trade war with the USA.
Speaking at the Reagan National Economic Forum in Simi Valley, California, on Friday, arguing that “tectonic plates are shifting.” Jamie Dimon said "I just got back from China last week," Dimon, They're not scared, folks. This notion that they're going to come bow to America, I wouldn't count on that."
“We have to get our act together,” said Dimon. “We have to do it very quickly.” Dimon added.
Last week US President Trump accused China of violating trade agreement and then threatened tariffs. He increased tariffs on Steel from 25% to 50% which is likely to hit hard on Canada more than China.
Earlier last week, a trade from the wall street of New York emerged which was named the TACO trade which stook for "trump always chickens out". The trade is allegedly based on buying stocks when trump announces tariffs and eventually postpones them later. President Trump is said to be livid when he heard about this term that has been coined on wall street.
Analysts are hoping that the latest tariff announcements are not a means to show that Trump is resolved to enforce the tariffs and to prove that there is no such trade as a taco trade.
The latest tariffs moves could make the US President look desperate to project a tough image against a resolute China which is ready to stand firm according the what Jamie Dimon has just said.
The world respect Jamie Dimon and his words carry weight around the world. JP Morgan was one the banks that did not require a bailout from the US Government during the 2008 financial crisis.