JP Morgan CEO: Europe is failing, and the market is too complacent about tariffs
JPMorgan Chase CEO Jamie Dimon recently issued a sharp warning: Europe is losing to the competition with China and the United States, with its GDP share of the U.S. dropping from 90% to 65% over the past 15 years. He pointed out the dangerous complacency in the market regarding the threat of Trump's tariffs. According to CCTV reports, the current U.S. tariffs on EU steel and aluminum have risen to 50%, and Trump has further threatened that if an agreement is not reached, tariffs could double
The global financial giant JPMorgan Chase's leader has issued a stern warning to Europe.
Recently, JPMorgan Chase CEO Jamie Dimon warned European leaders about competitiveness issues in Dublin, stating that Europe is currently "failing" in competition with the United States and China. According to the Financial Times, Dimon said at an event organized by the Irish Ministry of Foreign Affairs, "The share of Europe's GDP compared to the U.S. GDP has dropped from 90% to 65% over the past 10 to 15 years, which is not good news."
One of the most influential voices in the global financial community also warned that financial markets are too complacent about Trump's repeated threats to impose tariffs. Dimon stated, "There is a sense of complacency in the market," suggesting that investors are mistakenly ignoring the potential impacts of trade tensions.
Tariff Threats Underestimated
On trade policy, Dimon criticized the market's calm reaction to Trump's tariff threats. According to CCTV News, Trump previously threatened that if no agreement is reached, tariffs on the EU would rise to 50%. Currently, tariffs imposed by the U.S. on EU steel and aluminum products have increased from 25% to 50%.
However, investors have reacted lukewarmly to this threat. Dimon acknowledged that Trump exhibits "TACO" behavior (i.e., "Trump Always Comes Out"), but he believes there is a reason for Trump's actions, and Europe and investors should not underestimate the U.S. government's tariff policies.
Dimon believes that if the U.S. economy weakens, Trump will face difficulties. He stated:
I don't like to use the term "Taco deal" because I think his retreat is the right thing to do... I believe if the U.S. economy shows any signs of weakness, he will encounter difficulties.
Warning on European Competitiveness
At the same time, Dimon's warnings about the European economic outlook have become more direct than ever. He stated that the competitiveness of the European market is declining, and successful large companies are becoming increasingly rare.
We have a huge, strong market, our companies are large and successful, and they have a global scale... but this is becoming less and less common.
This statement is more severe than Dimon's remarks at the annual shareholder meeting in April this year, where he stated, "Europe has some serious problems that need to be addressed," urging European countries to undertake bold reforms to achieve growth.
Dimon also commented on the political landscape. Having led JPMorgan Chase since 2006, Dimon stated that although he has no political ambitions, he "might consider" participating in politics if certain political changes occur
