One of Trump’s billionaire supporters has harsh words for the president about his trade war

Citadel CEO Ken Griffin, a billionaire supporter of President Donald Trump and a megadonor to Republican candidates, had some unusually harsh words for the president about his trade war: It’s hurting America’s standing in the world and eroding the nation’s brand. “The United States was more than just a nation. It’s a brand. It’s a universal brand, whether it’s our culture, our financial strength, our military strength …. America rose beyond just being a country,” Griffin said Wednesday at the Semafor World Economy Summit in Washington. “It was like an aspiration for most the world. And we’re eroding that brand right now.” Griffin, founder of one of the largest hedge funds in the world, said that traders are concerned about parking their investments in the United States — particularly US Treasury bonds — because Trump’s tariffs have destroyed faith that America will remain a trusted and rational actor in global financial markets. “If you think of your behavior as a consumer, how many times do you buy a product with a brand on it because you trust that brand?” Griffin said. “In the financial markets, no brand compares to the brand of the US Treasuries — the strength of the US dollar and the strength and creditworthiness of US Treasuries. No brand came close. We put that brand at risk.” Treasury bonds have historically been the ultimate safe-haven asset, backed up by the full faith and credit of the US Treasury. When the going gets tough, investors typically look to the perceived safety of Treasury bonds to park their investments while riskier and more volatile stocks take a tumble. But that hasn’t happened in recent months. As Trump’s trade war has escalated, investors have feared that the United States could inflict significant damage to the global economy — but even more harm to its own economy and perhaps irreparable damage to its own reputation. JPMorgan Chase CEO Jamie Dimon had similar remarks in his annual shareholder letter earlier this month. Dimon said America’s “extraordinary standing” in the world was built on the strength of its economy, military and morals. But tariffs and Trump’s “America First” foreign policy could undermine the United States’ special position in the world. “America First is fine, as long as it doesn’t end up being America alone,” Dimon said. “If the Western world’s military and economic alliances were to fragment, America itself would inevitably weaken over time.” Griffin on Wednesday likened America’s brand to a famous dressmaker, a well-made handbag or a reliable automaker. But if the companies that make those brands have a public scandal, Griffin said that reputational damage can be nearly impossible to repair. “You know, you can buy like a similar dress with no name for less money, but you want the dress that you think is going to not fall apart in two weeks,” Griffin said. “It can take a very long time — a very long time — to remove the tarnish on a brand.” Investors have turned their backs on US assets. The dollar this week hit its lowest level in three years. US crude oil has tumbled as investors fear demand could sink sharply in a recession. Treasury yields, which trade in opposite direction to prices, have surged in recent weeks. And US stocks, despite a recent two-day rally, have still erased nearly $7 trillion of market value since the stock market’s peak reached in mid-February, according to S&P Dow Jones Indices. Griffin said that shows Trump and his advisers have their work cut out for them to right the perceived wrongs of the damaging trade war. “The president and the secretary of the treasury and the secretary of commerce need to be very thoughtful that when you have a brand, you need to behave in a way that respects that brand that strengthens that brand,” Griffin said. “Because when you tarnish that brand? It can be a lifetime to repair the damage that has been done.”