Ken Griffin, the CEO of Citadel, issued a stark warning regarding President Donald Trump's trade policy during his address at the UBS Financial Services Conference in Key Biscayne, Florida. Griffin expressed concerns over the negative impact of Trump's recent decision to impose a 25% tariff on steel and aluminum imports, highlighting the potential long-term challenges these policies could pose for multinational businesses and investors. He remarked on Tuesday that the bombastic rhetoric from Trump has already caused considerable damage.
Griffin, a known supporter and megadonor of Republican politicians who cast his vote for Trump, articulated his apprehensions about the hostile dynamics fueled by punitive tariffs. He argued that such dynamics could hinder long-term investments and create an atmosphere of uncertainty for international trade partners. Despite his previous warnings about crony capitalism being a consequence of tariffs, Griffin believes Trump's rhetoric has undermined trust between the United States and its trading partners.
"From my vantage point, the bombastic rhetoric, the damage has already been done," – Ken Griffin.
Griffin's comments came after Trump's decision to enact a 10% duty on all Chinese imports and temporarily pause a 25% tariff on goods from Mexico and Canada. These actions have raised questions about the stability and dependability of the U.S. as a trading partner. Griffin emphasized that this unpredictability significantly impacts multinational companies' strategic planning, especially concerning long-term capital investments.
"It makes it difficult for multinationals, in particular, to think about how to plan for the next five, 10, 15, 20 years, particularly when it comes to long lead time capital investments that could be adversely impacted by a degradation of the current terms of engagement as amongst the leading Western countries when it comes to terms and trade," – Ken Griffin.
Griffin's remarks at the conference highlighted his deep concern about the consequences of Trump's trade policy on multinational companies and investors. He suggested that the rhetoric from Trump has penetrated the minds of CEOs and policymakers, making it increasingly challenging to maintain confidence in the U.S. as a stable trading partner. His stern warning underscores the need for careful consideration of the long-term impacts of such trade policies.