The US has become 20% poorer in four weeks

Ken Griffin, a GOP donor, has said that the US has become 20% poorer in four weeks because of the latest tariff hike on global trade partners. This has made the US dollar much less valuable compared to the euro. The dollar measure has lost more than 9% of its value since the beginning of the year. Griffin said that the negative value of the currency is due to changes in economic policy. . @GinaChon : Is there any space where you see room for optimism or opportunities? Ken Griffin: “If you use the Euro as a reference currency, [the US has] become 20% poorer in four weeks. There’s not a lot of money to be made in that environment.” #WorldEconomySummit pic.twitter.com/nEwqeadcTa — Semafor (@semafor) April 23, 2025 He also said that the president’s latest attack on Federal Reserve Chair Jerome Powell has jeopardized the country’s good name. Trump has been pushing Powell ever since he started the tariff war to cut rates. Griffin said, “We put that brand at risk It can be a lifetime to repair the damage that has been done.” The head of the hedge fund agreed with economists and world leaders who said that new tariffs will not help anyone. For instance, the IMF downgraded its projection for global gross domestic product (GDP) growth to 2.8% in 2025, down from a forecast of 3.3% in January. At the same time, it expects the US growth to be at 1.8% instead of 2.7% as predicted before. Griffin says investors are not going to build factories in the US The longtime GOP donor disagreed with Trump’s theory that foreign manufacturers will race to build new factories within the US. This idea caused Trump to use tariffs on huge manufacturing countries like China. He said: “I’ll tell you what’s not going to happen is, people are not going to raise [money] to build manufacturing in America […] because with the policy volatility, you actually undermine the very goal you’re trying to achieve.” Even Musk revealed that he had privately advised President Trump to lower tariffs, saying he believes it will ultimately be better for the economy. But he admitted that the decision rests with the White House. In addition, Tim Cook explained that he prefers China for Apple manufacturing not because of cheap prices but because the US does not have as many experts as China. He said, “You know, in the US you could have a meeting of tooling engineers, and I’m not sure we could fill the room. In China you could fill multiple football fields.” He added that their expertise is also very deep. Griffin says that the US has lost its oldest allies Trump’s plan earlier this year to put a 10% tax on almost all foreign goods and higher “reciprocal” taxes on many countries has had an effect on both friends and foes of the US. Griffin said that the extra taxes, like the 25% tariff on Canada and Mexico, could cause the country to lose some of its oldest friends. “How does Canada feel about our country today versus two months ago? How does Europe feel about the United States today versus two months ago?” Griffin asked. France was the United States’ oldest ally. Their long-lasting connection is significant because it was important for the US in its early years, including its fight for independence. Both countries have been working together and forming strategic partnerships around the world. Despite all that, France was not spared. Meanwhile, China, a foe of the US, is working on expanding trade with Southeast Asia, Latin America, and Africa. It is trying to wean itself off the US. China is also competing heavily with the US. Some examples are DeepSeek, which is now a strong competitor to ChatGPT, and BYD, which beat Tesla last year to become the biggest maker of electric vehicles. Other companies like Huawei and Vivo have been taking away Apple’s valuable market share. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Source: Cryptopolitan