GOP Megadonor Ken Griffin Warns Trump Tariffs Fuel Crony Capitalism Amid $140B Trade Deficit

Ken Griffin, founder of hedge fund Citadel and a prominent GOP donor, has sharply criticized President Donald Trump's tariff policies, warning they have unleashed an era of crony capitalism by allowing the government to pick winners and losers in the economy. Griffin expressed concern that these tariffs, especially with selective exemptions, are disrupting supply chains and weakening the U.S. dollar, leading to reduced consumer purchasing power and higher costs for everyday goods. He also described tariffs as a regressive tax that disproportionately impacts working-class Americans and could trigger stagflation—a combination of inflation and slower economic growth. Griffin's initial support for Trump has soured as the trade war's negative effects on economic growth and market confidence become more apparent, with Wall Street executives increasingly worried about the administration's approach. Despite Trump's promises that tariffs would boost domestic manufacturing, Griffin questioned the likelihood of significant job creation in that sector given broader economic shifts. The concerns raised highlight the tension between the administration's trade policies and their potential to undermine the broader U.S. economy and financial markets.