Billionaire Ray Dalio warns about the consequences of Trump’s tariffs: They could cause something “much worse than a recession”

Billionaire investor Ray Dalio has expressed deep concern that President Donald Trump’s aggressive tariff policies could push the U.S. economy into a recession—or potentially trigger a crisis even more severe.

Speaking on NBC’s Meet the Press, Dalio, founder of Bridgewater Associates, warned that the U.S. is “very close to a recession” and that mishandling current economic challenges could lead to “something worse”.

“Right now, we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.” Dalio said.

Trump’s tariffs ‘very, very disruptive’

Criticizing the administration’s approach, Dalio, who correctly predicted the 2008 financial crisis, described the tariffs as “very disruptive,” comparing them to “throwing rocks into the production system.”

“If you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors, those changes in the orders, the systems, are very, very disruptive. How that’s handled could produce something that is much worse than a recession. Or it could be handled well,” he said.

Donald’s recent imposition of a 145% tariff on Chinese goods, with some exemptions for electronics, has intensified trade tensions. Although a 90-day pause on additional tariffs (excluding those on China) has been announced, uncertainty remains high and international tensions are equally as strained.

Financial institutions are adjusting their forecasts in response: for example, Goldman Sachs recently increased the probability of a U.S. recession in the next 12 months to 45%, citing the potentially disastrous impact of Trump’s tariffs on economic activity.

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