JPMorgan Chase CEO Jamie Dimon is raising red flags over President Donald Trump’s latest tariff policies, cautioning that the aggressive trade stance could have far-reaching consequences for the U.S. economy and global markets.

In his annual letter to shareholders released Monday, Dimon said the new wave of tariffs is likely to drive up inflation and dampen economic growth. “There’s growing concern that these tariffs will slow the economy and raise prices,” Dimon noted. “While it’s uncertain whether they’ll trigger a full-blown recession, a deceleration in growth seems inevitable.”

He also warned that the ripple effects won’t be limited to imported goods. “Even domestic prices are likely to rise as businesses adjust to increased costs,” he said. “The short-term impact of these measures should not be underestimated, regardless of their long-term justification.”

The financial fallout has already begun. Global markets, including cryptocurrencies, have nosedived following Trump’s tariff announcement. Bitcoin (BTC) sank below $79,000 — its lowest level since November — and remains largely flat at $78,235. The CoinDesk 20 Index has shed over 10% today alone, bringing its monthly losses to nearly 20%.

Dimon, a longtime advocate for strategic U.S. leadership on the world stage, reiterated his support for the spirit of “America First,” but warned against isolating the nation. “If the U.S. allows key alliances to fracture, our long-term influence and strength will suffer,” he wrote. “‘America First’ should not mean ‘America alone.’”