Jamie Dimon says Trump was ‘right to chicken out’ on tariffs, but that markets are getting too complacent 

Economy·Jamie DimonJamie Dimon says Trump was ‘right to chicken out’ on tariffs, but that are getting too complacent BY Eleanor PringleBY Eleanor PringleReporterEleanor PringleReporterEleanor Pringle is an award-winning reporter at Fortune covering news, the economy, and personal finance

Eleanor previously worked as a correspondent and news editor in regional news in the U

She her journalism training with the Press Association after earning a degree from the University of East Anglia

SEE FULL BIO Jamie Dimon, chief executive officer of JPMorgan Chase, said are overlooking the real risks of Trump's tariff threatsPatrick Bolger/Bloomberg - Getty ImagesDespite embracing the so-called “TACO Trade”—Trump Always Chickens Out—JPMorgan CEO Jamie Dimon cautioned that investors may be underestimating the risks of relying on past tariff U-turns

UBS’s Paul Donovan reinforced this concern in a note seen by Fortune, warning that market strength rooted in Trump’s retreating behavior may ironically reduce his incentive to back down this time

President Trump has become so dependably unpredictable that have allegedly devised a phrase for navigating his foreign policy: The TACO Trade: Trump Always Chickens Out

Jamie Dimon, the CEO of JPMorgan Chase[/hotlink], isn’t a fan of the disparaging phrase, as he says that Trump has been right to change course on tariffs in some instances

That being said, he added, investors are now getting too comfortable with the see-sawing rhetoric and are letting their guard down as a result

The Wall Street veteran is known for his focus on risk, and modeling a huge range of outcomes to ensure America’s largest bank is ready for any event

Speaking at an event in Ireland organized by the nation’s foreign ministry, Dimon said: “I hate to use the word ‘Taco trade” because I think he did the right thing to chicken out. ” He added, per the Financial Times: “Unfortunately, I think there is complacency in the market. ” Taking this week alone as an example, on Monday Trump kicked off his letter-sending-spree to foreign governments outlining the hikes to exports they would soon be facing

Despite the threats and fears over knock-on impacts on inflation, the market took little notice

Yet this dependence on the fact that Trump will U-turn is the very reason he is increasingly unly to, noted UBS’s chief economist Paul Donovan

In a note sent to Fortune this week, Donovan explained: “Investors are inclined to assume that Trump will retreat as Trump has done so often

However, Trump yesterday suggested equity strength was a sign financial tariffs. “Thus, the paradox— are strong on the assumption Trump will retreat; being strong reduces the incentive for Trump to retreat. ” Deutsche Bank’s Jim Reid also noted this morning that President Trump’s policies aren’t shaking the market to the same magnitude as earlier in the year

So far, ators have widely dismissed notions that President Trump may try to run for a third term, on the grounds that it is set out in the 22nd Amendment of the Constitution that presidents can only serve twice

That being said, Trump doesn’t seem to be entirely against the idea

He told NBC in March he wasn’t “joking” finding a loophole to serve out a third term, adding: “A lot of people want me to do it

But, I mean, I basically tell them we have a long way to go, you know, it’s very early in the administration. ” Dimon, who has led JPMorgan for nearly two decades, isn’t getting drawn into the speculation, saying such concerns were “premature. ” Vice President JD Vance, he added, would also ly serve as a solid obstacle in the path of Trump seeking another reelection, as he would want to run under his own steam

Dimon said: “[Vance will] say, ‘Hey buddy, get in the basement

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