ISTANBUL

Ray Dalio, the billionaire founder of Bridgewater Associates, said Tuesday that in the wake of US President Donald Trump’s tariff policies, the world is "on the brink" of the breakdown of the monetary order, domestic political order, and international world order.

In a post on X, he stated that while some believe the tariff disruptions will settle with more negotiation, he is now hearing from more people dealing with these issues that "it is already too late."

Dalio is known for predicting the 2008 financial crisis, and has been a long-time doom predictor.

He said more people, including exporters to the US, now realize that whatever happens with tariffs, “these problems won't go away, and that radically reduced interdependencies with the US is a reality that has to be planned for.”

Dalio emphasized that the US can no longer sustain its role as the top consumer and debt issuer, and expecting to be repaid in strong, stable dollars is “naive.” Therefore, he said other countries need to make alternative economic plans.

“There is a growing risk that the United States, imposing these challenges to deal with, will increasingly be bypassed by a world of countries that will adapt to these separations from the United States and create new synapses that grow around it,” he said.

Trump's trade policies have reshaped global trade dynamics in the first 100 days of his second term, with aggressive tariffs on major partners, causing rising tensions and uncertainty.

Even the president’s senior advisers reportedly cautioned him weeks before his tariff decision that the measures could damage global markets and risk a downturn in the US economy.