Jamie Dimon, CEO of JPMorgan Chase (JPM), once voiced his disapproval of Canadian Prime Minister Mark Carney's proposition for a coalition of 'middle powers.'

During the Council on Foreign Relations' CEO Speaker Series in June, Dimon dismissed Carney's idea as a 'fantasy.' He pointed out that a similar approach in Europe has led to an economic downturn, with the continent's GDP falling from 90% of America's to 70%.

'They did that; it's called Europe,' said Dimon, drawing laughter from the crowd.

Dimon attributed the decline in Europe's economic competitiveness to high taxes, burdensome regulation, and weak capital formation. He called Europe 'anti-business' and warned that these factors could lead to further erosion of Europe's economy and result in governments carrying debt loads nearing 100% of GDP.

Dimon added that a lot of capital from Europe is moving to the U.S. Dimon also compared the size of U.S. capital markets, which is nearly $70 trillion, with that of Europe, specifically Britain's FTSE 100, the German Deutsche Börse and France's Paris Bourse. 'That is serious stuff, and there's not a deep recognition,' he said.

The JPMorgan Chase CEO suggested that rather than creating new geopolitical blocs, Europe should focus on building a genuine common market and adopting policies that drive economic growth. He emphasized that America's larger stock market reflects policies that have encouraged investment and economic expansion.

US-Canada Tensions Drive Trade Shift

This criticism comes against the backdrop of strained relations between the U.S. and Canada. Earlier this year, Canadian PM Mark Carney, in his speech at the World Economic Forum in Davos, criticized the weakening of the 'rules-based international order' and urged middle powers to unite against economic coercion. His remarks followed a visit to China and a tariff deal with Xi Jinping.

Trump responded at Davos, warning Carney that 'Canada lives because of the United States.' Later, the President even withdrew an invitation for Canada to join his 'Board of Peace.'

Over the period, the trade ties between the U.S. and Canada have worsened. Last month, the trade talks between the U.S. and Canada fell apart, and both nations have escalated the trade war. Carney expressed concerns over Canada's heavy reliance on the U.S. for economic partnership.

Amid the escalating trade war with the U.S., he urged a shift in economic strategy, calling for accelerated trade and investment with 'trusted partners' beyond the U.S., reiterating the essence of his 'middle powers' speech.