- Ray Dalio said that, despite rollbacks, "it's too late" to escape the consequences of President Donald Trump's tariff policies
- In a post on X, Dalio warned that the U.S. is in a position to "be bypassed" by the rest of the world if the policies remain in place
- Dalio is the latest in a string of billionaires to speak out about the tariffs
Ray Dalio says, "It's too late" to escape the economic fallout of President Donald Trump's tariffs.
In a lengthy post on X on April 28, the Bridgewater Associates founder expressed his belief that the world economic order was breaking down due to the new policies.
"Some people believe that the tariff disruptions will settle down as more negotiations happen and greater thought is given to how to structure them to work in a sensible way," the post began. "However, I am now hearing from a large and growing number of people who are having to deal with these issues that it is already too late."
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Dalio said that many exporters who trade with the U.S. were worried about the long-term realities Trump's tariff policies are bringing to the surface. "Whatever happens with tariffs, these problems won’t go away, and that radically reduced interdependencies with the U.S. is a reality that has to be planned for," he said.
"It is also increasingly being realized that the United States’ role as the world’s biggest consumer of manufactured goods and greatest producer of debt assets to finance its over-consumption is unsustainable, so assuming that one can sell and lend to the U.S. and get paid back with hard (i.e. not devalued) dollars on their U.S. debt holdings is naive thinking, so other plans have to be made," Dalio wrote.
Dalio's predictions carry a certain weight in financial circles since his company that predicted the 2008 financial crisis.
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Dalio is the latest in a string of billionaires to express concern over Trump's tariffs.
Trending: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
Bill Ackman, founder of Pershing Square Capital Management, said on X last month that enacting the tariff policies was tantamount to "launch[ing] economic nuclear war on every country in the world." Meanwhile, Duquesne Family Office founder Stanley Druckenmiller said on X that he does "not support tariffs exceeding 10%."
One thing these billionaires all have in common is a concern that tariffs will remove the U.S. from the "monetary, domestic political and social, and international geopolitical orders," Dalio put it in his post.
"There is a growing risk that the United States…will increasingly be bypassed by a world of countries that will adapt to these separations from the United States and create new synapses that grow around it," he said.
Closing out his warning, Dalio referenced his new book, "How Countries Go Broke: The Big Cycle," urging decision makers to take its advice to "deal with these big fundamental changes in the world order calmly, intelligently, and, ideally, cooperatively."
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