Ken Griffin warns Trump of damage to U.S. Treasury brand

In Washington, D.C., Ken Griffin, the founder and CEO of Citadel, expressed serious concerns about President Donald Trump's global trade policies at the Semafor World Economy Summit. He articulated that the high tariffs imposed during Trump’s trade war jeopardize the reputation of the United States and particularly its government bond market. Griffin emphasized that the U.S. had established itself as more than just a nation; it had become a universal brand that represented cultural, military, and financial strength globally. However, he warned that the current trade escalations are damaging that brand and eroding America’s standing among international markets. Griffin's observations came in response to a recent surge in market volatility triggered by Trump's tariff announcements, which shocked financial markets and raised concerns among investors. The president initially rolled out the highest tariffs on imports in generations, prompting significant fluctuations on Wall Street. Later, amid the growing chaos, Trump announced a 90-day pause on most of the tariff increases, except for those targeting China, indicating attempts to stabilize relations with other countries. Despite the pause, Griffin observed that this ongoing political uncertainty led to rising Treasury yields and a weakening U.S. dollar, signaling a departure of investors from the perception of the U.S. as a safe haven for investments. Griffin asserted that the actions taken by the U.S. government risked damaging the brand of U.S. Treasuries, which had historically been viewed as a cornerstone of economic trust. He specifically noted that no brand in the financial markets compared to the U.S. Treasury market's strength, creditworthiness, and reliability. He cautioned that tarnishing such a prestigious brand could lead to irreversible damage, taking a significant amount of time and effort to restore faith among global investors. He emphasized that the key figures in the administration—including the President and the Secretaries of Treasury and Commerce—needed to act with deliberate care and responsibility when managing this brand. The financial sector reacted strongly to these developments, with established trends indicating a growing concern among traders regarding the safekeeping of their investments in U.S. Treasury bonds. This shift reflects a broader apprehension that the U.S. could inflict considerable damage to both the global and its own economies—and potentially irreparably harm its reputation. Griffin concluded his remarks by highlighting the long-term implications that could result from such policy decisions, stressing that anything that tarnishes a brand could take years to rectify. He urged for thoughtful behavior that would not undermine the established brand of America, thus calling for a more measured approach to international trade relations.