Billionaire Ken Griffin, a significant donor to Republican candidates, publicly criticized President Trump's trade war, arguing it harms America's global image and economic stability. He compared the US's reputation to a brand, suggesting that Trump's policies are damaging this brand's trustworthiness and reliability.
Griffin highlighted investor concerns about US Treasury bonds due to the trade war, stating that the uncertainty created by the tariffs undermines faith in the US as a rational actor in global markets. He emphasized that the US Treasury bonds, typically a safe-haven asset, have been affected by the trade war's uncertainty. This is also reflected in a decrease in the value of the dollar and US assets.
JPMorgan Chase CEO Jamie Dimon echoed similar concerns in his annual shareholder letter, warning about the potential negative effects of Trump's “America First” policy and tariffs on the US's global standing and alliances. Dimon stressed that the US's strength is tied to its economic and military alliances.
Griffin used the analogy of a well-established brand, comparing it to the US reputation. He argued that damaging the brand (through trade war policies) can take a long time to repair. He urges the administration to adopt a more thoughtful approach to maintain America's economic strength and global standing.
Griffin ultimately called for a more measured approach to trade policy to prevent further reputational and economic damage.