Ken Griffin, the founder and CEO of Citadel, has raised alarms over the potential adverse effects of Donald Trump’s trade policies on the reputation of the United States and its government bond market. Speaking at Semafor’s World Economy Summit in Washington, D.C., Griffin, who manages over $65 billion in assets through his hedge fund, emphasized the importance of maintaining the integrity of U.S. Treasurys amid rising global trade tensions.
Griffin, who is one of President Trump’s loudest defenders and one of the biggest financiers of Republican politicians, expressed concern. To Dunn, the former president’s recent decision to raise import tariffs to historic rates could be enough to tarnish Trump’s otherwise stellar fiscal brand. He underscored how the U.S. Treasury market is vital to maintaining global economic stability. On top of that, he added a third thing to watch for—strength of the U.S. dollar.
The hedge fund manager conveyed a broader perspective on America’s influence, asserting that “The United States was more than just a nation … it’s a universal brand. Whether it’s our culture, our financial strength, our military strength, America rose beyond just being a country.” He laid out how the perceived erosion of this brand would have extreme, perhaps permanent consequences.
Trump’s recent trade decisions sparked significant volatility on Wall Street, with financial markets reacting sharply to the uncertainty generated by his administration’s policies. As expected, earlier this month, Trump called a 90-day truce on most tariff hikes. He ruled out China, as part of his strategy to negotiate bilateral deals with multiple countries.
Griffin cautioned that the President, along with the Secretary of Treasury and the Secretary of Commerce, must act thoughtfully to protect the U.S. brand. He stated, “When you tarnish that brand, it can be a lifetime to repair the damage that has been done.” His comments underscore the difficult line that needs to be walked when it comes to foreign policy and trade policy.
Griffin was not the only financial expert to express concern about market volatility. Warren Buffett commented on the extreme behavior observed in markets, noting it’s beneficial for those who maintain composure during turbulent times. Additionally, Krishna Guha voiced concerns about potential market reactions to events such as Trump’s attempts to dismiss Federal Reserve Chairman Jerome Powell.