Billionaire investor and Bridgewater Associates founder Ray Dalio warns that Donald Trump’s tariff policies have caused long-lasting damage to the U.S. economy. According to Dalio, these actions have shaken the confidence of global trade partners and undermined the U.S. dollar’s dominance, potentially triggering a deeper global crisis of trust.

Tariffs Are Weakening the Dollar and U.S. Leadership

In a post published on X (formerly Twitter) on April 29, Dalio described a looming collapse of the global monetary and political system, built on fragile and unsustainable foundations.

🔹 He argues that the United States overestimated its global leadership role and failed to recognize how much global trade depends on trust.

🔹 Many countries are now turning away from the U.S. market, not only because of the tariffs, but because they’ve lost confidence in the stability of American monetary and trade policy.

The Dollar Is Losing Global Trust

Dalio believes that faith in the U.S. dollar as the world’s reserve currency is fading. The U.S., he says, is both the largest consumer of manufactured goods and the largest issuer of debt instruments — a combination that becomes dangerously unsustainable without trust.

“This isn’t new — it’s a modern version of a historic pattern, where monetary and political systems begin to unravel,” Dalio explained.

🔹 The de-dollarization process has already begun, and if confidence in the U.S. ability to repay debts continues to erode, it could lead to a debt crisis similar to Latin America’s defaults in the 1980s.

The U.S. Government Starts to Retreat

Internal pressure is mounting. Following warnings from major retailers like Walmart, the Trump administration is beginning to soften its stance on tariffs. Reports suggest the White House is considering significantly reducing tariffs on imports from several countries — including China.

🔹 Retailers argue that higher tariffs would raise consumer prices, a politically risky move ahead of elections.

Supply Chains in Turmoil, Recovery Won’t Be Fast

Tensions between the U.S. and China have seriously disrupted supply chains. Ports are clogged, and logistics are slowing down. Analysts estimate that even if tariffs were lifted immediately, restoring full operations would take time — at least 30 days in Los Angeles, and up to 50 days in New York and New Jersey.

Final Warning: Trust Can’t Be Rebuilt Overnight

Dalio ends his analysis with a stark message: “When trust is gone, negotiation becomes impossible.” Without trust, no monetary or political system can survive. According to him, the question is no longer if a crisis will come — but when, and how severe it will be.

#TRUMP , #Tariffs , #TradeWars , #Geopolitics , #ElonMusk

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