Ray Dalio warns Trump's tariffs may cause recession, chaos

Ray Dalio, founder of Bridgewater Associates, has expressed significant concern that President Donald Trump's tariff policies are pushing the U.S. economy to the brink of a recession, potentially leading to an economic situation worse than a recession. During an NBC 'Meet the Press' interview, Dalio described the tariffs as 'throwing rocks into the production system,' causing major disruptions and uncertainty in financial markets. He highlighted the broader risks from U.S. debt, the growing budget deficit, and geopolitical tensions, suggesting these could lead to profound changes in the world order. The recent 90-day tariff delay, excluding China, has only added to the uncertainty, impacting business decisions and long-term productivity. Dalio, who previously predicted the 2008 recession, warned that simultaneous materialization of these risks could result in a crisis more severe than past events like those in 1971 or 2008. He called on congressional leaders to manage the budget deficit responsibly to prevent further economic strain.