Citadel CEO Ken Griffin speaks through the Semafor World Financial system Summit 2025 at Conrad Washington on April 23, 2025 in Washington, DC.
Kayla Bartkowski | Getty Photos
Billionaire Ken Griffin, founder and CEO of the Citadel hedge fund, mentioned working class Individuals will bear the brunt of President Donald Trump’s punitive tariffs on U.S. buying and selling companions.
“Tariffs hit the pocketbook of hardworking Individuals the toughest,” Griffin mentioned on CNBC’s “Closing Bell” Wednesday. “It is like a gross sales tax for the American folks. It may hit those that are working the toughest to make ends meet. That is my large situation with tariffs. It is such a painfully regressive tax.”
Trump rolled out shockingly excessive levies on imports final month, triggering excessive swings on Wall Avenue. The president later went on to announce a 90-day pause on a lot of the rise, apart from China, because the White Home sought to strike offers with main buying and selling companions. Trump has slapped tariffs of 145% on imported Chinese language items this yr, prompting China to impose retaliatory levies of 125%.
Griffin, whose hedge fund managed greater than $65 billion firstly of 2025, voted for Trump and was a megadonor to Republican politicians. However he has additionally criticized Trump’s commerce coverage, saying it dangers spoiling the “model” of the US and its authorities bond market.
“The explanation the American voters elected President Trump was due to the failed financial insurance policies of Joe Biden and the inflationary shock that decreased the true incomes of each American family,” Griffin mentioned. “The president actually does need to give attention to managing inflation, as a result of I feel it is entrance and middle, the first rating card that American voters are going to consider relating to this midterm election.”
The Wall Avenue titan mentioned there’s a “modest” threat of stagflation as greater tariffs create each inflationary pressures and decelerate the economic system. He mentioned the trajectory of the economic system largely is determined by how Trump’s financial coverage develops.
As laid out by Treasury Secretary Scott Bessent, Trump’s financial program takes a three-pronged method: commerce, tax cuts and deregulation.
“The query is, will all three of these come collectively to present us the expansion that we want in our economic system?,” Griffin requested. “That is the true query we will face over the following two years.”
