JPMorgan CEO: Europe is failing, and the market is too complacent about tariffs.

JPMorgan CEO Jamie Dimon recently issued a sharp warning: Europe is losing the competition with China and the U.S., 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, the current U.S. tariffs on EU steel and aluminum have risen to 50%, and Trump further threatened that if no agreement is reached, the tariffs could double.

Written by: Long Yue

Source: Wall Street News

The head of global financial giant JPMorgan has issued a stern warning to Europe.

Recently, JPMorgan 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 stated at an event organized by the Irish Ministry of Foreign Affairs, "The share of Europe's GDP relative to the US 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 global finance has also warned that financial markets are too complacent about Trump's repeated threats to impose tariffs. Dimon stated that "there is a sense of complacency in the markets," suggesting that investors are mistakenly ignoring the potential impact of escalating trade tensions.

Tariff Threats Underestimated

In terms of 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, the EU's retaliatory tariffs would rise to 50%. Currently, the 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 that Trump has his reasons for doing so, and Europe and investors should not underestimate the U.S. government's tariff policy.

Because Dimon believes that if the U.S. economy shows signs of weakness, Trump will face difficulties. He said:

I don't like using the term "Taco trading" because I think his retreat is the right thing to do... I believe he will face difficulties if the US economy shows any signs of weakness.

Alarm Bell for European Competitiveness

At the same time, Dimon has issued warnings about the European economic outlook more candidly than ever. He stated that the competitiveness of the European market is declining, and there are fewer and fewer successful large companies.

We have a huge and strong market, our company is large and successful, with a global scale... but this situation is becoming less and less common.

This statement is harsher than Dimon's remarks at the annual shareholders' meeting in April this year. At that time, he stated that "Europe has some serious issues that need to be addressed" and urged European countries to implement drastic economic reforms to achieve growth.

Dimon also commented on the political landscape. Dimon, who has led JPMorgan Chase since 2006, stated that although he has no political ambitions, he "might also consider" participating in politics if certain political changes occur.