GOP donor Ken Griffin suggested that the value of the US dollar has deteriorated significantly compared to the euro in the past month under the latest tariff hikes on President Trump’s global trading partners.
Citadel founder and CEO Griffin said in a conversation with Semafor’s Gina Chon at the World Economic Summit that the country was “20% poorer in four weeks.” Since the beginning of the year, Dollar Index It’s down by more than 9%.
He added that in the president’s latest attack on economic policy change and Federal Reserve Chairman Jerome Powell, currency deflation puts the country’s natural reputation at stake.
“We put the brand at risk,” Griffin told Chong. “It could be a lifetime to repair any damage done.”
The hedge fund manager repeated economists and world leaders who said that new tariff measures would not generate winners, but would force all involved to “not drown.”
Earlier this year, Trump’s announcement imposed a 10% baseline tax on almost all foreign imports, and in many countries, higher “mutual” taxes have similarly affected US friends and enemies. Griffin issued a three-month retaliation tariff on most retaliatory tariffs except China, but said additional taxes, including a 25% tariff in Canada and Mexico, risking the country losing some of its oldest allies.
“How does Canada feel about our country today two months ago? How does Europe feel about the United States today compared to two months ago?” Griffin asked.
“And some people scream, ‘Well, that’s not the problem.’ But what do you know? “The whole Western world is caught up in a debt crisis.”
Longtime GOP donors have defied Trump’s theory that foreign manufacturers compete to build new factories in the US
“I’ll tell you what won’t happen to you, people won’t raise you [money] To build manufacturing in America,” he said. “Because policy volatility really undermines the very goals you are trying to achieve.”
In particular, the increased costs of importing steel and aluminum are set to rattle US factories of canned automakers, construction companies and beverage manufacturers.
Griffin’s words reflect feelings from other top economists who are largely skeptical of Trump’s trade agenda, which will show a recession in the coming months if the president doesn’t change course.
