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Trump Tariffs: Ray Dalio said there is far less focus on the circumstances that led to these tariffs and the major disruptions that may still come.
Ray Dalio and US President Donald Trump.
Trump Tariffs: As US President Donald Trump’s reciprocal tariffs sent shockwaves throughout the world, billionaire investor Ray Dalio shared a long post on the reasons behind the decision taken by the White House.
The founder of Bridgewater Associates wrote on X (formerly Twitter) that while significant attention is being given to the newly announced tariffs and their substantial impacts on markets and economies, there is far less focus on the circumstances that led to these tariffs and the major disruptions that may still come.
He acknowledged the importance of the tariff announcements and the role of President Trump in causing them, but stressed that many people are overlooking the underlying factors that got Trump elected and led to these tariffs. Additionally, he pointed out that the more crucial forces driving everything, including the tariffs, are being mostly ignored.
Ray Dalio wrote, “The far bigger, far more important thing to keep in mind is that we are seeing a classic breakdown of the major monetary, political, and geopolitical orders. This sort of breakdown occurs only about once in a lifetime, but they have happened many times in history when similar unsustainable conditions were in place.”
Elaborating the shift in US political order, international relations, increased use of artificial intelligence and climate change, Ray Dalio wrote, “Changes in these forces and how they are affecting each other is what we should be focusing on.”
He continued, “For that reason, I urge you to not to let news-grabbing dramatic changes like the tariffs draw your attention away from these five big forces and their interrelationships, which are the real drivers of Overall Big Cycles changes. If you allow yourself to be distracted by them, you will a) miss how the conditions and the dynamics of these big forces are causing these news-making changes, b) fail to think through how these news-making changes will affect these big forces, and c) fail to keep focused on how this Overall Big Cycle and the parts that drive it typically transpire, which will tell you a lot about what is likely to happen.”
He reiterated that Donald Trump’s tariffs are unavoidable as he said, “It’s helpful to keep in mind that what is happening now is just a contemporary version of what has happened innumerable times throughout history.”
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Washington D.C., United States of America (USA)
