Americans in the automotive industry in Warren, Michigan, a suburb of Detroit, are pondering President Trump’s new tariff policy as he tackles domestic manufacturing.
Bridgewater Associates founder Ray Dalio called on the two superpowers to sign a deal with the US as they escalate retaliatory tariffs on each other, sending global stocks into uncertainty.
In a post on X, the billionaire said it is now essential for all involved to “rethink their approach.”
“There are better and worse ways to deal with issues relating to unsustainable debt and imbalances. And the decision for President Trump to step back from the worse ways and negotiate ways to address these imbalances is a much better way.”
Dario’s Post suspends and lowers mutual tariffs in other countries announced last week, hours after Trump said he was raising tariffs on Chinese goods to 125% over Beijing’s “lack of respect.” The move comes in response to China’s announcement that it is increasing mutual tariffs on US goods from 34% to 84%.
Trump says he has raised China’s tariffs further and suspended mutual tariffs on others
Ray Dalio will speak on stage at the Wall Street Journal’s 2024 The Future of Everything Festival, held in Spring Studios in New York City on May 22, 2024. (Dia dipasupil / getty images / getty images)
Meanwhile, for other countries, the Trump administration said there will be 90-day tariffs for a large number of over 75 countries to contact the White House and make transactions.
Navarro suspends Trump’s tariffs as “the art of recipe trade agreements”
“Trump said he hopes to sign a deal with China that thanks the former people for the US dollar that was achieved by easing the fiscal and monetary policy and stimulating demand while selling dollar assets,” Dario said.
President Donald Trump presents a signed executive order during an event at the White House on April 2nd, which imposed tariffs on imports. (Andrew Harnik / Getty Images / Getty Images)
“This is an advantage for both sides. The Chinese should then restructure and monetize their excessive local government debt, and their debts should be pushed behind them,” Dario said. “In some way, there are major changes to the debt/monetary order to address the issue of debt, trade and capital imbalances.”
On Friday, November 8th, 2024, the People’s Bank of China (PBOC) building in Beijing, China. (Getty Images/Getty Images)
Dario said the next move for the Trump administration is to deal with the US deficit by cutting it to just 3% of GDP.
Click here to get your FOX business on the go
“This is also a great time for investors who are shocked and terrified by what happened (and what will happen) to rethink their approach to building a portfolio.
