Billionaire investor Ray Dalio warned on Monday that the combination of trade disruptions in the U.S. and weak fundamental indicators is leading to a significant shift in the global political and currency order.
Dalio wrote in a post on X that "it is already too late" for the disruptions from U.S. President Donald Trump's tariffs to settle down, noting that several exporters in the U.S. are now reassessing their positions in the face of high trade duties.
He warned that the problems in the global economy are deeper than just Trump's tariffs, and that "radically reduced interdependence with the U.S. is a reality that must be prepared for."
Dalio warned that the role of the U.S. as the largest consumer of industrial goods and the largest issuer of debt is unstable, and that the notion of selling U.S. goods and receiving dollars is "naive thinking."
"We are on the verge of destroying the currency order, domestic political order, and international world order due to unsustainable, poor fundamental indicators that can be easily seen and measured," Dalio wrote.
Dalio, who founded the hedge fund Bridgewater Associates, warned that the risk is growing that the U.S. will increasingly bypass a "world of nations" that are adapting to separation from the country and will grow around it, especially as it embarks on a path of trade destruction.
"I fear we are moving beyond the ideal time to be aware and properly plan for these major changes in the world order," Dalio said, urging investors and politicians to stop wavering in daily market movements and instead focus on the broader, fundamental picture.
Dalio's comments reflect heightened uncertainty regarding the U.S. economy under Trump, as the 47th president begins to implement a program of high trade tariffs and sweeping economic reforms.
Trump has started a fierce trade war with China and has also imposed high tariffs on a number of other major industries since taking office in January.
Investors and politicians largely reject Trump's tariffs, considering that the president has changed his position on these measures several times. But tariffs, especially the 145% duty on China, are expected to cause global economic disruptions and likely slow U.S. growth.
The recent sell-off of the dollar and U.S. Treasury bonds reflects growing investor concern over Trump's policies.
This article was translated with the help of artificial intelligence. For more information, please see our Terms of Use.
