Billionaire Hedge Fund Manager Ken Griffin Warns Trump's Trade War Is Tarnishing America's Brand

Citadel CEO Ken Griffin has issued a stark warning about the long-term consequences of Donald Trump's trade policies, arguing that the president's reciprocal tariff blitz is eroding the United States' global reputation and financial credibility. 

At Thursday's Semafor World Economy Summit in Washington, D.C., the billionaire hedge fund manager said the U.S. has historically been more than just a nation. 

"It's a brand. It's a universal brand, whether it's our culture, our financial strength, our military strength …. America rose beyond just being a country," Griffin said. 

"It was like an aspiration for most [of] the world. And we're eroding that brand right now."

Griffin stressed that investors are increasingly wary of U.S. Treasury bonds, traditionally viewed as safe-haven assets, due to the unpredictability introduced by the trade war. 

"In the financial markets, no brand compares to the brand of the U.S. Treasuries — the strength of the U.S. dollar and the strength and creditworthiness of U.S. Treasuries. No brand came close. We put that brand at risk," he said.

Although demand for Treasuries has recently strengthened, investors have largely dumped them alongside U.S. stocks amid Trump's tariff policy whipsaw — first imposing steep duties and pausing them for 90 days.

Last week, Goldman Sachs said the impact of tariff policies could complicate the case for owning Treasuries as a hedge against volatility, given that tariffs could drive down growth while boosting inflation.

Griffin also said the U.S. "has become 20% poorer in four weeks," using the euro as a reference.

According to CNBC, the ICE U.S. Dollar Index (DXY) has dropped sharply— down over 7% since Trump's inauguration and more than 2% since he unveiled his full trade policy in the first week of April. It remains below the key 100 level as of the last close.

Griffin joins a growing list of big Republican Trump supporters who have now turned sharply critical of the president, signaling growing unease within the financial sector about the president's handling of the economy.

Year to date, the SPDR S&P 500 ETF (SPY) exchange-traded fund, the Invesco QQQ Trust (QQQ) ETF, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) have lost more than 5%.

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