Billionaire investor Ray Dalio says it’s ‘too late’ to escape damage from Trump’s tariffs

CNN - Apr 29th, 2025

Billionaire investor Ray Dalio has issued a stark warning about the impending economic fallout from tariffs imposed during President Donald Trump's tenure. Dalio, renowned for predicting the 2008 financial crisis, expressed concerns that the global economic order, with the US at its core, is crumbling due to unsustainable economic practices. In a social media post, he highlighted how a growing number of people and businesses are preparing for a future with reduced economic interdependencies with the US. This comes amidst mounting anxiety among global investors about the strategy behind Trump's tariffs, leading to a retreat from dollar-backed assets and fears over the dollar's status as the global reserve currency.

Dalio's comments arrive at a time when prominent financial figures, such as Jamie Dimon and Stanley Druckenmiller, have also voiced apprehensions over the trade wars initiated by Trump. These concerns underscore the potential for a significant shift in global economic dynamics, where countries seek to create new economic alliances, bypassing the US. Dalio's warning is accompanied by the promotion of his new book, signaling a broader narrative of caution against complacency in lending practices to the US. The implications of these developments are profound, as they suggest a reevaluation of the US's financial and geopolitical influence on the global stage.

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RATING

7.2

Fair Story

Consider it well-founded

The article provides a timely and engaging overview of Ray Dalio's concerns regarding the economic impact of Trump's tariffs and the potential shifts in global economic power. It effectively communicates Dalio's viewpoint and highlights the relevance of these issues to public interest. However, the article would benefit from greater balance by including diverse perspectives and more detailed verification of specific claims. Improved transparency regarding the basis of Dalio's analysis and additional expert opinions could enhance the article's credibility and impact. Overall, the story is well-written and accessible, making complex economic topics understandable to a general audience.

Accuracy

The article accurately reports Ray Dalio's perspective on the economic impact of Trump's tariffs and the potential breakdown of the global economic order. Dalio's claims are directly quoted, and the text provides context regarding his background and previous predictions. However, the story would benefit from further verification of specific claims, such as the assertion that foreign investors have retreated from dollar-backed assets and the potential devaluation of the US dollar. These points require supporting data or expert analysis to substantiate the claims made.

Balance

The article primarily presents Ray Dalio's viewpoint, supplemented by mentions of other billionaires like Jamie Dimon and Stanley Druckenmiller who share concerns about Trump's policies. However, it lacks perspectives from economists or policymakers who might disagree with Dalio's assessment. Including counterarguments or alternative analyses could enhance the balance by providing a more comprehensive view of the economic situation.

Clarity

The article is clearly written, with a logical flow that guides the reader through Dalio's claims and their implications. The language is straightforward, making complex economic topics accessible to a general audience. However, some technical terms, like 'global reserve currency,' might benefit from brief explanations for clarity.

Source quality

Ray Dalio is a credible source, given his reputation and experience in the financial industry. The article references his social media post, adding to the reliability of the source. However, the story would benefit from additional sources or expert opinions to corroborate Dalio's claims, particularly concerning the broader economic impacts and investor behaviors.

Transparency

The article is transparent about its reliance on Ray Dalio's social media post and provides context regarding his previous predictions and current views. However, the methodology behind his claims, such as the indicators he uses to assess economic conditions, is not detailed. Greater transparency about the basis of Dalio's analysis would enhance the article's credibility.