Billionaire investor Ray Dalio has voiced concerns that Donald Trump’s trade policies could lead to an economic downturn more severe than a recession. In an interview on NBC’s Meet the Press, Dalio stated that the US is on the brink of a recession and is very close to an economic crisis if these policies are not handled properly. He warned that the situation could be more profound, citing it as a major breakdown of the monetary order. This is against the backdrop of tumultuous global stock markets, which have been affected by Trumps tariff policies, including a 145% tariff increase on China. Dalio compared the current times with the 1930s and warned that if tariffs are increased, debt levels rise, a rising power challenges an existing power, and if these factors are not managed, the situation could deteriorate into something worse than a recession. Despite the freezing of tariffs on most US imports except those from China for 90 days, financial experts have alerted of lasting damage, particularly in relation to the de-dollarization of the global economy.

Source: https://www.theguardian.com/business/2025/apr/13/ray-dalio-trump-tariffs-recession