Citadel founder and Republican megadonor Ken Griffin issued a rare rebuke of President Donald Trump’s trade policies this week, warning that the escalating tariff war is eroding America’s credibility and tarnishing its global image.

Speaking at the Semafor World Economy Summit in Washington, Griffin described the United States not just as a country, but as a global symbol of trust, stability, and aspiration. “The U.S. was more than a nation—it was a brand,” Griffin said. “That brand represented our culture, economic strength, and military might. We’re chipping away at that now.”

Griffin, whose hedge fund is among the world’s largest, noted growing apprehension in financial markets, particularly over U.S. Treasury securities. These instruments, once seen as the bedrock of global financial security, are now under scrutiny due to concerns over America’s unpredictability in trade.

“Think of your favorite product—you choose it because you trust the brand,” Griffin said. “U.S. Treasurys used to be that gold-standard brand in global finance. That trust is fading.”

Traditionally, Treasury bonds act as a safe harbor during market turmoil. But recent months have shown a different pattern. Investors, spooked by Trump’s aggressive trade stance, have pulled back from American assets altogether. The U.S. dollar hit a three-year low this week, oil prices fell, and equities have lost nearly $7 trillion in value since mid-February, according to S&P Dow Jones Indices.

JPMorgan Chase CEO Jamie Dimon echoed Griffin’s sentiments in his annual letter to shareholders. Dimon warned that America’s unique role in the world—rooted in economic power, military alliances, and moral leadership—could be compromised if the U.S. chooses isolation over cooperation. “America First is okay,” Dimon wrote, “as long as it doesn’t mean America alone.”

Griffin drew parallels between the nation’s reputation and high-end brands, comparing the U.S. to a designer label whose quality is suddenly in question. “Rebuilding trust takes time—sometimes a lifetime,” he said.

The message to the White House was clear: Protect the integrity of America’s standing in the world. “Leadership means acting in ways that reinforce confidence, not corrode it,” Griffin stressed. “Once a brand loses its shine, the road to restoration is long and uncertain.”

Related Readings:

• China Strikes Back in Escalating Trade War with Rare Earth Curbs and Tech Push

• US Trade Wars and Military Globalization Spark Complex Alignments
  

• Trump Pauses Some Tariffs, Escalates China Trade War
  .

A trade war between the world’s two largest economies has intensified, sending shockwaves through global markets and raising the spectre of a recession. The United States and China have imposed steep tariffs on each other’s goods, with American levies on Chinese exports reaching as high as 245%, and Beijing retaliating with a 125% tax on imports from the US.

While consumers and industries brace for continued instability, Beijing is signalling both resilience and readiness. President Xi Jinping’s government has repeatedly stated that it prefers dialogue, but insists it will “fight to the end” if pressured. State media have urged citizens to band together in the face of adversity, with one official declaring that “the sky will not fall.”

China’s expansive domestic market offers some cushion to the blow on its export sector. The government is rolling out subsidies, travel incentives for retirees, and other programs to stimulate local spending, aiming to transition from a factory-driven economy to one powered by consumers and innovation.

That shift has already begun. Chinese tech giants are making strides, with homegrown AI tools like DeepSeek challenging American counterparts and EV manufacturer BYD surpassing Tesla in global sales. Massive investments, including a $1 trillion commitment over the next decade, underscore China’s ambition to lead in sectors such as artificial intelligence and renewable energy.

Despite U.S. efforts to reroute supply chains, American firms have struggled to replicate China’s scale and efficiency elsewhere. China’s decades of industrial expertise and deep infrastructure continue to be a strategic advantage.

China is also leveraging geopolitical strategy. The Belt and Road Initiative has expanded Beijing’s influence across Southeast Asia, Latin America, and Africa. Trade with these regions has surged, reducing reliance on the U.S. and deepening China’s ties with the Global South. Once heavily dependent on American agriculture, China now imports more soybeans from Brazil, and cultivates more domestically.

The U.S. remains a key economic partner, but it’s no longer China’s largest export market—Southeast Asia now holds that title. In 2023, China was the biggest trading partner for 60 countries, double the number aligned with the U.S.

While President Trump initially stood firm, equating his tariffs to “medicine,” a steep drop in U.S. bond markets led him to pause the bulk of his measures for 90 days. Experts note that the bond market has become a pressure point the Chinese leadership can exploit. Holding roughly $700 billion in U.S. Treasuries, Beijing has hinted at reducing purchases, though economists caution this could backfire by destabilising the yuan and damaging China’s own holdings.

More potent, however, may be China’s near-total control of rare earth minerals—critical components in everything from smartphones to missiles. Following Washington’s latest tariff announcements, Beijing restricted exports of seven key rare earths essential to AI chip production and green technologies. With more than 90% of global refining capacity, China’s grip on the supply chain poses a serious threat to high-tech manufacturing worldwide.

In a related move, China also banned the export of antimony, a crucial material for flame retardants and semiconductors, doubling its price and sparking global panic buying.

As tensions rise and retaliatory moves escalate, the world is being pulled into a new era of economic fragmentation—one shaped not just by tariffs, but by technology, minerals, and geopolitical alliances. The trade war may have started with steel and soybeans, but it’s ending up reshaping the architecture of global power.

Related Readings:

• China Urges U.S. to Scrap Tariffs After Limited Tech Exemptions
  .

• Trump Pauses Some Tariffs, Escalates China Trade War
  .

• US Trade Wars and Military Globalization Spark Complex Alignments

President Donald Trump’s aggressive trade strategy is casting a long shadow over the global economy, according to a stark new warning from the International Monetary Fund. In its latest World Economic Outlook, released Tuesday, the IMF downgraded growth forecasts for nearly every region, citing escalating tariffs and mounting uncertainty.

The report forecasts global expansion will drop to 2.8% this year, down from 3.3% in 2024 — well below historical norms. The United States, once a key driver of global momentum, is expected to see growth shrink to just 1.8% in 2025, compared to 2.8% the previous year.

The IMF made clear that Trump’s recent flurry of trade duties — which raised the average U.S. import tax to a century high — is a major factor behind the gloomier projections. Nearly half of the downgrade in U.S. growth, said IMF Chief Economist Pierre-Olivier Gourinchas, stems from these new levies. Even before the announcements, the mere uncertainty surrounding trade policy had begun to dent consumer and business confidence.

“These tariffs are delivering broad-based damage,” Gourinchas said, adding that their long-term effects will be “negative for all regions.” The IMF emphasized that the risks to the global economy are “firmly tilted to the downside.”

The Fund also revised its U.S. inflation outlook upward, now expecting a 3% rise this year — up from its 2% January estimate — partly due to the inflationary pressure of increased import costs. Many economists warn that easing interest rates now, as President Trump continues to urge, could further fuel inflation. The president has repeatedly called on the Federal Reserve to cut rates, recently launching a personal attack on Fed Chair Jerome Powell.

In response to questions about political pressure on central banks, Gourinchas underscored that “central bank independence remains a cornerstone,” suggesting that monetary policy should remain shielded from political interference.

The IMF said the report was finalized under “exceptional” circumstances, noting that Trump’s tariff rollout on April 2 forced them to discard near-completed forecasts and recalculate amid shifting policy ground. “We’re entering a new era,” Gourinchas told reporters, “as the global economic system that has operated for the last 80 years is being reset.”

Echoing the Fund’s concerns, European Central Bank President Christine Lagarde told CNBC that open trade has historically bolstered growth across continents. She warned that the ripple effects of U.S. tariffs will be felt in Europe too, though she does not foresee a eurozone recession.

While the IMF left the door open to a more optimistic outlook if trade frictions ease and new agreements bring clarity, the current trajectory, it says, is troubling. Without a de-escalation in trade tensions, the fund warns, the global economy may face not only slower growth — but prolonged instability.

Related Readings:

• How to Improve IMF Programs: Learning Some Hard Lessons
  .

• Trump Pauses Some Tariffs, Escalates China Trade War
  .

• Preparing for the Impact of the US Tariffs on European Trade
  .