JPMorgan CEO: Europe is failing, and the market is too complacent about tariffs
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JPMorgan CEO: Europe is failing, and the market is too complacent about tariffs
JPMorgan CEO Jamie Dimon has recently issued a sharp warning: Europe is losing the competition with China and the U.S., with its GDP falling from 90% of America's to 65% over the past 15 years. He directly pointed out the dangerous complacency in markets regarding Trump's tariff threats.
Navigating Web3 tides with focused insightsAuthor: Long Yue, Wall Street Insights
The head of global financial giant JPMorgan Chase has issued a stark warning to Europe.
Recently, JPMorgan CEO Jamie Dimon warned European leaders about competitiveness issues during an event in Dublin, stating that Europe is currently "failing" in its competition with the United States and China. According to the Financial Times, speaking at an event organized by Ireland's Department of Foreign Affairs, Dimon said, "Europe’s total GDP as a share of U.S. GDP has dropped from 90% to 65% over the past 10 to 15 years—that’s not good news."
One of the most influential voices in global finance also cautioned that financial markets are taking Trump's repeated threats of imposing tariffs too lightly. Dimon said there is "complacency in the markets," arguing that investors are wrongly ignoring the potential shocks posed by escalating trade tensions.
Tariff Threats Underestimated
On trade policy, Dimon criticized the market's overly calm reaction to Trump's tariff threats. According to CCTV News, Trump previously threatened that if no agreement is reached, reciprocal tariffs on the EU could rise to 50%. The U.S. has already increased tariffs on steel and aluminum imports from the EU from 25% to 50%.
Yet investors have responded indifferently to these threats. Dimon acknowledged Trump exhibits what he calls "TACO" behavior ("Trump Always Comes Out"), meaning Trump often backs down at the last minute. However, he stressed that this should not lead Europe or investors to underestimate U.S. tariff policies.
Dimon believes Trump would face difficulties if the U.S. economy shows any signs of weakness. He stated:
I don't like using the term 'Taco Trade' because I think it was the right move for him to back down... But I do believe he will run into trouble if there's any softness in the U.S. economy.
Alarm Bells Over European Competitiveness
At the same time, Dimon’s warnings about Europe’s economic outlook have become increasingly blunt. He said Europe’s market competitiveness is deteriorating, and the number of large, successful companies is dwindling.
We used to have strong, vibrant markets, with large and successful companies operating at global scale... but that’s becoming rarer.
This statement is more severe than Dimon’s comments made earlier this April at the annual shareholder meeting, when he said “Europe has some serious problems to fix” and urged European nations to carry out sweeping economic reforms to drive growth.
Dimon also commented on the political landscape. Having led JPMorgan since 2006, he said although he has no political ambitions, he “might consider” entering politics should certain political changes arise.
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