Dalio: U.S. Tariff Policies Trigger Potential Global System Breakdown
(MENAFN) Billionaire investor Ray Dalio, founder of Bridgewater Associates, warned on Tuesday that the world is "on the brink" of a collapse in the global monetary, political, and international order, triggered by U.S. President Donald Trump’s tariff policies.
In a post on X, Dalio stated that while some hope the disruptions from the tariffs will ease through negotiations, he is increasingly hearing from experts involved in these matters that "it is already too late."
Known for predicting the 2008 financial crisis, Dalio has long voiced concerns about global economic stability. He explained that more people, including U.S. exporters, now recognize that, regardless of what happens with tariffs, “these problems won't go away, and that radically reduced interdependencies with the US is a reality that has to be planned for.”
Dalio emphasized that the U.S. can no longer maintain its position as the leading consumer and issuer of debt, suggesting that expecting repayment in strong, stable dollars is "naive." He argued that other nations must begin preparing alternative economic strategies.
“There is a growing risk that the United States, imposing these challenges to deal with, 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,” Dalio remarked.
Trump's trade policies, which have altered global trade dynamics in his second term’s first 100 days, have involved aggressive tariffs on key trading partners, leading to escalating tensions and uncertainty.
Reports indicate that even Trump’s senior advisers warned him in advance that these tariff measures could harm global markets and potentially trigger a downturn in the U.S. economy.
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