Citadel LLC CEO Ken Griffin, on Monday, while speaking at Oxford Union in the UK said that President-elect Donald Trump‘s economic policies including tariffs are a “long, slippery slope,” that will hurt U.S. companies in the long run to compete globally.

What Happened: Griffin, a significant Republican donor, expressed confidence in Trump’s victory, saying that the U.S. economy is going back to “the business of business” after calling the former president’s economic policies as “regretfully” last year, reported Bloomberg.

Since founding Citadel in 1990, Griffin has grown the company into a $65 billion giant and accumulated a personal fortune that, according to the Bloomberg Billionaires Index, is currently valued at $42.2 billion.

The 56-year-old hedge fund billionaire said he believes countries continue to spend more than they can afford and that he expects Trump’s administration would reduce the size of government in a broad conversation that covered a variety of subjects, including politics, investing, and immigration.

See Also: Nvidia Shares To Climb Over $140+ Levels, Says Technical Analyst Ahead Of Q3 Results

Why It Matters: Recently, tech investor and Palantir Technologies’ co-founder Peter Thiel has made a daring prediction about the potential impact of Trump’s 60% tariff on Chinese goods.

Thiel said that shifting manufacturing from China to Vietnam would significantly harm China, and have only a minor impact on American consumers. From a geopolitical perspective, he argued, this move would align closely with American strategic interests.

Goldman Sachs estimates that a potential universal tariff would raise core personal consumption expenditures inflation — the Fed’s favorite inflation gauge — by 0.9-1.2 percentage points at its peak, pushing inflation back to 3%.

Moreover, a recent study by the National Retail Federation warns that Trump’s proposed tariffs could significantly impact American consumers, potentially reducing annual spending by $78 billion.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.