Quick Read
- Ken Griffin critiqued Donald Trump’s Davos speech, particularly on Greenland and European defense.
- Griffin stated Europe’s economic growth lags behind the U.S. and questioned European defense commitments.
- He argued Trump’s tariffs have been borne by 96% of American consumers and businesses, citing a Kiel Institute study.
- Griffin warned against escalating trade stress and emphasized the need for thoughtful negotiations on Greenland.
- He reiterated concerns about frayed U.S.-European relations and the importance of Federal Reserve independence.
In a significant intervention at the World Economic Forum in Davos, Switzerland, Citadel CEO and founder Ken Griffin delivered a pointed critique of former President Donald Trump’s recent address and his administration’s economic policies, particularly the ongoing dispute over Greenland and the impact of tariffs on American consumers. Griffin’s remarks, made during the high-profile gathering, underscored concerns among some business leaders about the stability of global trade relations and the financial burden placed on the American populace, offering a direct counterpoint to Trump’s assertive nationalist rhetoric.
Griffin Weighs In on Trump’s Davos Speech and Greenland
President Donald Trump’s 70-minute speech in Davos captured global attention, with his renewed pursuit of acquiring Greenland dominating headlines. Trump, while stating he would not use force, declared his intention to seek “immediate negotiations to once again discuss the acquisition” of the vast Arctic island. This proposal, which has strained relations with Europe, formed a central theme of discussions among the assembled business elite.
Ken Griffin, speaking on CNBC’s Squawk Box, acknowledged that Trump had an “important message to deliver to a European audience that, bluntly, needs to do better.” He highlighted the disparity in economic growth, noting that “Europe’s economic growth lags far behind America.” Griffin also drew a stark comparison in national defense commitments, stating, “The commitment of the American people to defend our country runs deep. The commitment of the Europeans to defend their countries — if you look at surveys of the population — is not nearly as strong.”
Regarding Greenland, Griffin suggested that one of Trump’s “important foundational statements he made with respect to the justification why the US needs unfettered access to Greenland” was the implicit question of whether Europe would stand with the U.S. in a future conflict. However, he cautioned against hasty action. Should the U.S. “pursue this path,” Griffin stressed that discussions “should take time and be thoughtfully laid out.” He added a clear warning about the broader economic implications: “Investors around the world do not want to see an escalation of the stress in global trade that has played out over the last 12 months.”
Tariffs: A Burden on American Consumers and Businesses
Beyond the geopolitical sparring over Greenland, Griffin delivered a scathing assessment of the Trump administration’s tariff policies. Speaking at the World Economic Forum, he stated unequivocally that U.S. consumers and businesses have been bearing the brunt of these trade taxes. “Unfortunately, the most recent research indicates the tax been borne by both American consumers and by American businesses,” Griffin explained. “So, the money raised by Washington in the tariffs has really come at the expense of the American people.”
His comments were bolstered by a study from the Kiel Institute, a German research firm, which found that Americans have absorbed a staggering 96% of the Trump administration’s tariffs, with foreign exporters incurring only the remaining 4%. The study, which analyzed shipment-level data across 25 million transactions valued at nearly $4 trillion, revealed that tariffs did not cause export prices to fall in countries like Brazil and India, which faced high tariff rates. Instead, they primarily led to a reduction in trade volume. The Kiel Institute further highlighted that tariffs “interfere with supply chains and buying habits while narrowing the selection of goods available for consumers,” exacerbating costs and limiting choices for the average American.
Frayed Relationships and Federal Reserve Independence
Griffin also touched upon the broader consequences of Trump’s trade approach, noting that the U.S. has seen “higher inflation due to Trump’s tariffs” and that these actions have “disrupted long-standing trading relationships.” His remarks came after President Trump’s vow to implement increasing tariffs on European allies until the U.S. was permitted to buy Greenland, further escalating tensions.
The prominent Republican supporter, who affirmed his vote for Trump in the 2024 election, reiterated his long-standing concerns about the administration’s criticism of the U.S. Federal Reserve. Griffin has consistently advocated for maintaining the Fed’s independence, viewing it as crucial for economic stability and objective monetary policy. This stance places him among a segment of conservative financial leaders who, while generally aligned with Republican economic principles, diverge on issues of trade protectionism and institutional autonomy.
Broader Business Reactions to Trump’s Speech
Other influential figures at Davos also reacted to Trump’s address. Peter Schiff, chief economist at Euro Pacific Asset Management, observed that “cooler heads prevailed at the White House” regarding Greenland, noting that Trump would now “just hold a grudge” instead of resorting to military force if negotiations failed. However, Schiff warned that if the U.S. did succeed in buying Greenland, it would likely “massively overpay.” Schiff also used the opportunity to warn about a looming housing “crash” in the U.S., claiming Trump “basically admitted there is a housing bubble” and was trying to prevent it from popping, which Schiff argued was counterproductive.
Meanwhile, Cloudflare CEO Matthew Prince commented on Trump’s delivery style, noting that unlike previous Davos appearances where Trump “stuck extremely close to the teleprompter,” this time he did not, suggesting a more unscripted approach.
Griffin’s comprehensive critique highlights a growing divergence within conservative business circles regarding the efficacy and long-term implications of nationalist economic policies. His emphasis on the direct cost to American consumers and the disruption to global trade relationships provides a significant counter-narrative to the administration’s claims of economic benefit, suggesting that the pursuit of unilateral economic advantage may carry substantial domestic and international drawbacks.