Billionaire investor Ray Dalio, founder of Bridgewater Associates, has issued a stark warning that the economic fallout from former President Donald Trump’s tariffs is now unavoidable. In a detailed post on social media platform X (formerly Twitter) on April 28, 2025, Dalio argued that the global economic and monetary order centered on the United States is on the verge of breaking down due to “unsustainable, bad fundamentals.”
Dalio, known for his prescient calls such as anticipating the 2008 financial crisis, said that many indicators suggest the world is approaching a critical juncture where the US-led monetary system, domestic political stability, and international alliances are unraveling. He highlighted that exporters who trade with the US increasingly recognize the reality of “radically reduced interdependencies” with America, a direct consequence of the tariffs and shifting global trade dynamics.
He also pointed out that the US’s role as the largest consumer of manufactured goods and the biggest issuer of debt assets to finance its overconsumption is no longer sustainable. This shift is fueling concerns among investors and governments worldwide, who are seeking clarity on the long-term strategy behind Trump’s tariff policies.
Dalio warned that investors would be “naive” to expect continued lending to the US with repayment in “hard” dollars-currency that retains its value without devaluation. He suggested that the US risks being increasingly bypassed as other countries adapt to the new economic realities and develop alternative financial and trade networks that exclude America.
This warning comes amid growing speculation that the US dollar’s dominance as the global reserve currency could be challenged or diminished in the future. Foreign investors have been retreating from dollar-backed assets and US Treasuries, reflecting concerns about the stability of the US economy.
Dalio is not alone in expressing alarm over the consequences of Trump’s trade war. Other prominent financial figures, including JPMorgan Chase CEO Jamie Dimon, hedge fund managers Stanley Druckenmiller and Bill Ackman, have also voiced worries that the tariffs could inflict lasting damage on the American economy.
In summary, Ray Dalio’s latest commentary underscores the deepening economic challenges facing the United States as a result of protectionist trade policies, signaling a potential shift away from the US-centered global economic order that has prevailed for decades.