JPMorgan Chase CEO Jamie Dimon is warning that President Trump’s tariffs will lead to higher inflation, slower growth, and potentially spell disaster for America’s economic alliances.

Dimon, one of the most influential figures in global finance, published his annual shareholder letter Monday as global markets plunged in response to Trump’s plans. Dimon wrote that Trump’s levies “will likely increase inflation and are causing many to consider a greater probability of a recession.”

He noted that there are “many uncertainties surrounding the new tariff policy,” including how other countries will retaliate.

“The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse,” Dimon added. “In the short run, I see this as one large additional straw on the camel’s back.”

The S&P 500 as of Monday, April 7. Google

Dimon also expressed concern that tariffs could lead to a “disastrous” fragmentation of America’s long-term economic alliances.

“We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products,” he wrote, later adding: “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

Elsewhere throughout the 58-page letter, Dimon expressed support for the White House’s efforts to secure the U.S. border and “cut back on needless, mind-numbing, job-killing regulations,” and praised the economy for holding firm despite an “unsettling landscape.”

Dimon, who once described himself as a Democrat, has been head of JPMorgan since 2006 and is widely considered to be one of the most powerful voices on Wall Street.

Analysts at the financial services company say a global recession is now more likely than not this year in the wake of Trump’s tariffs, raising the chance to 60 percent last week as the worldwide selloff in stocks gathered pace.