Billionaire investor Ray Dalio warns that it is too late to avoid the economic damage caused by Trump's tariffs, suggesting that the global economic order centered around the US is deteriorating. He observes that unsustainable economic fundamentals are leading to the breakdown of monetary, domestic political, and international world orders. Dalio, known for predicting the 2008 financial crisis, notes that global dependencies on the US are reducing and the country's role as the largest consumer and debt producer is unsustainable. Foreign investors are distancing themselves from dollar-backed assets amid uncertainties about the US economy, raising concerns about the future of the US dollar as the global reserve currency. Other prominent figures, including Jamie Dimon and Stanley Druckenmiller, echo these concerns about the potential negative impact of the trade war on the American economy.

Ray Dalio, the founder of Bridgewater Associates, asserts that the economic consequences of Trump's tariffs are irreversible and the world economic order with the US at its center is breaking down due to bad fundamentals.

Dalio's analysis suggests that we are nearing a collapse of various orders, driven by unsustainable economic practices, which could lead to major geopolitical shifts.

He emphasizes that the United States' significant role as a major consumer of manufactured goods and a leading producer of debt is no longer viable, as global interdependencies with the US are diminishing.

The retreat of foreign investors from dollar-backed assets and US Treasuries reflects growing concern over the stability of the US economy and the possibility of the US dollar losing its status as the global reserve currency.

Dalio's warning, coinciding with the promotion of his new book, suggests that continued lending to the US with expectations of repayment in stable currency is naive.

He highlights a global trend where countries are adapting to reduced reliance on the US, creating new economic connections that bypass traditional US-centric models.

Prominent financial figures like Jamie Dimon and Stanley Druckenmiller share similar apprehensions regarding the long-term impacts of the trade war instigated by Trump's policies on the American economy.