Dimon Links Dollar's Reserve Status to US Trade Deal Push

JPMorgan Chase & Co. chief Jamie Dimon says the dollar's reserve currency status depends on having a strong US economy. He is urging Washington to finalise trade pacts with allies to protect that position.

This week, Dimon laid out his case during a Bloomberg Tech interview with anchor David Westin. He also published an opinion piece in the Wall Street Journal on Monday.

Dimon's Reasoning for Linking Dollar and Trade Pacts

Dimon argued that the best military and the dollar's reserve role both require the world's best economy. He said this is not unrealistic, citing the US location between the Atlantic and Pacific oceans.

Therefore, Dimon wants the Western bloc kept together for trade. He said foreign investors hold $20 trillion to $30 trillion in the US. Meanwhile, American companies hold nearly equal sums abroad.

Dimon also mentioned 40 military alliances and 20 free trade agreements. The Office of the US Trade Representative (USTR) lists 20 free trade agreements currently in force.

He acknowledged that unfair practices should be addressed. However, his priority is completing the deals.

“But my view is we should try to get these trade deals done.”

Dimon, the head of JPMorgan Chase & Co., made these remarks to Bloomberg.

Implications of Dimon's Proposal for Markets

His Wall Street Journal op-ed expanded on the idea. Dimon proposed a sweeping US-Europe free-trade agreement in exchange for European economic and military reforms, CNBC reported.

He said the pact could eventually be expanded to include Canada, Mexico, Japan, South Korea, Australia, and the Philippines. In contrast, the Trump administration has pursued protectionist tariff policies, according to the same report.

Dimon has long criticized Bitcoin (BTC). Strategy CEO Phong Le recently half-jokingly asserted that Dimon privately backs Bitcoin. For crypto investors watching dollar strength, the interview ties currency dominance to trade policy.

It remains to be seen if the administration shifts from tariffs to new trade pacts, which would indicate whether Dimon's reasoning is gaining influence.