According to a report on February 12 by the Financial Association (editor Bian Chun), recently, President Trump of the USA has frequently issued threats regarding tariffs, and has put some of these into practice, creating a tense atmosphere globally as the "trade war is about to escalate."

Regarding Trump's aggressive stance on trade policy, Ken Griffin, the "king of global hedge funds," founder and CEO of Citadel Investment, issued a stern warning.

According to Statistics from Institutional Investor magazine, since its establishment in 1990, by the end of last year Citadel Investment has achieved a cumulative profit of 74 billion USD for investors, making it the "most profitable hedge fund in history." As its historical profits surpassed its rival Bridgewater Associates, combined with Dalio's retirement, Griffin has become the top figure in the hedge fund Industry.

"From my perspective, these boastful remarks have caused damage," Griffin said on Tuesday at the UBS Group Financial Services Conference held in Key Biscayne, Florida.

Many analysts view Trump's tariffs as a negotiating tool to force other countries to make concessions. In response, Griffin stated: "When you try to reach an agreement, resorting to this form of rhetoric is a huge mistake because... it makes CEOs and policymakers realize that we cannot rely on the USA as our trading partner."

On the 10th, local time, Trump signed an executive order announcing a 25% tariff on all imports of Steel and Aluminum to the USA. The latest measures also eliminated the tariff-free quotas and exemption policies for some trading partners.

Earlier this month, Trump signed an executive order imposing a 25% tariff on goods imported from Mexico and Canada, and later delayed the tariff measures for Canada and Mexico for one month. He also announced a 10% tariff on goods imported from China. This tariff measure took effect on February 4.

Griffin once voted for Trump and is a super donor in Republican political circles. He believes that the hostile situation created by punitive tariffs could challenge the long-term investments of multinational companies and investors.

This especially makes it difficult for multinational companies to consider how to plan for the next 5, 10, 15, or 20 years, particularly when it comes to long-term capital investments, which may be adversely affected by the deteriorating conditions of engagement with major Western countries regarding terms and trade.

Griffin had previously warned that tariffs could lead to crony capitalism and that, in the long run, this could cause American industries to lose competitiveness and productivity.

Crony capitalism is an economic system characterized by a close, mutually beneficial relationship between business leaders and government officials.

Editor/danial