Ken Griffin Slams Trump Tariffs as Regressive, Warns of Inflation and Economic Reputational Damage

Billionaire investor Ken Griffin, founder and CEO of Citadel, criticized President Donald Trump’s tariffs, warning they would disproportionately hurt working-class Americans. Speaking on CNBC’s Closing Bell Overtime, Griffin likened the tariffs to a regressive sales tax, arguing they target the very people struggling most to make ends meet. He emphasized that the financial burden would fall hardest on those with limited means, making the policy both economically damaging and socially unfair.

Tariff Battles Spark Market Turmoil and Raise Concerns Over U.S. Economic Reputation

Trump’s administration recently imposed steep tariffs—some as high as 145%—on Chinese imports, igniting volatility in financial markets. Although the White House introduced a 90-day pause on certain tariffs, China responded with retaliatory levies of up to 125%. The tit-for-tat actions have unsettled Wall Street and created uncertainty for global trade, with Griffin warning of broader economic repercussions.

Despite being a supporter and major donor to Republican causes and Trump’s campaign, Griffin did not shy away from criticizing the former president’s trade agenda. He warned that aggressive tariffs could damage the reputation of the United States and diminish confidence in the country’s government bonds. Griffin sees this as a dangerous deviation from the pro-growth economic policies that initially earned Trump support from many voters.

Inflation, Stagflation Fears, and the Future of Trump’s Three-Pillar Economic Plan

Griffin acknowledged the role of inflation and rising costs in influencing voter sentiment, placing emphasis on how economic pain under President Biden led to Trump’s political comeback. However, he also expressed concerns that Trump’s tariff-driven policies could further stoke inflation while simultaneously slowing economic growth—a potential setup for stagflation, a scenario where inflation and stagnant growth occur together.

Looking ahead, Griffin highlighted that Trump’s economic strategy hinges on a triad of policies: trade protectionism, tax cuts, and deregulation. Treasury Secretary Scott Bessent has outlined this approach as central to the administration’s growth ambitions. Griffin concluded with a critical question—whether these three pillars can effectively combine to deliver the economic growth the nation needs in the coming years.