Special Poll
GOP megadonor Ken Griffin warned that the United States has grown “20 percent poorer in four weeks,” blaming the economic fallout on President Trump’s latest wave of tariffs targeting America’s global trading partners.
Speaking with Semafor’s Gina Chon at the World Economy Summit, Griffin, who runs hedge fund giant Citadel, pointed to a sharp decline in the U.S. dollar’s strength relative to the euro as a reflection of growing instability. Since the start of the year, the dollar index has dropped more than 9 percent, triggering fresh concerns about the country’s global financial standing.
Griffin didn’t hold back in his critique of Trump’s economic direction, particularly the tariffs and the president’s ongoing attacks on Federal Reserve Chair Jerome Powell. He said the combination of these moves has badly damaged America’s credibility.
“We put that brand at risk,” Griffin said. “It can be a lifetime to repair the damage that has been done.”
The billionaire investor joined a chorus of economists and world leaders who argue that no side will benefit from the escalating trade wars, warning that the world economy is being dragged into a cycle of stagnation where the best outcome is merely “to tread water and not drown.”
Trump’s decision earlier this year to introduce a flat 10 percent tariff on nearly all foreign imports alongside even steeper reciprocal tariffs on select countries has caused ripples across both ally and adversary nations. While he temporarily paused most of those tariffs for three months (excluding China), Griffin said the move had already strained relationships with countries like Canada and key European allies.
“How does Canada feel about our country today versus two months ago? How does Europe feel about the United States today versus two months ago?” Griffin asked. “And some people scream, ‘Well, it just doesn’t matter.’ But you know what? It matters for a very profound reason. The entire Western world is engulfed in a debt crisis.”
He pushed back hard on Trump’s frequent claims that tariffs would drive a resurgence of domestic manufacturing by pressuring foreign firms to set up shop in the U.S.
“I’ll tell you what’s not going to happen people are not going to raise money to build manufacturing in America,” Griffin said. “Because with the policy volatility, you actually undermine the very goal you’re trying to achieve.”
The rising cost of importing essential materials like steel and aluminum is already sending shockwaves through American manufacturing, particularly for industries such as automotive, construction, and packaged goods.
Griffin’s remarks underscore deepening fears that the U.S. may be veering toward a recession, and that unless there’s a sharp course correction, Trump’s current approach could trigger broader economic damage both at home and abroad.