Hedge fund billionaire Ken Griffin, founder and CEO of Citadel, voiced sharp concerns over the U.S. government’s current tariff policies, warning that they are accelerating the rise of crony capitalism. Speaking on the sidelines of the Milken Institute’s Global Conference, Griffin told Politico that the Trump administration’s selective exemptions on tariffs signal a troubling trend of the government picking economic winners and losers.
“Tariffs open the doors to crony capitalism. The government starts to pick winners and losers,” Griffin said. “I thought that would play out over years. It’s terrifying to watch this unfold in a matter of weeks.”
Griffin criticized the administration’s recent decisions to exclude key tech products — such as smartphones and microchips — from the steep 145% tariffs imposed on Chinese goods just last month. These exemptions, he said, reinforce the perception that companies with political influence can avoid the financial pain of tariffs, leaving others to bear the burden.
He echoed concerns shared by economists like Dartmouth’s Douglas Irwin, who previously warned that such policies would increase backroom lobbying, “filling the swamp” rather than draining it. The Trump administration’s trade decisions, Griffin said, already reflect that dynamic.
His comments came as the U.S. unveiled a new trade deal framework with the United Kingdom that reduces tariffs on British automobiles. The move drew backlash from the American Automotive Policy Council, with its president, Matt Blunt, arguing the deal unfairly favors U.K. carmakers over their North American competitors.
“This hurts American automakers, suppliers, and auto workers,” Blunt said. “We hope this preferential access doesn’t set a precedent for future talks with Asia or Europe.”
Griffin also said his early optimism about Trump’s second term has faded in light of the ongoing trade war. He warned that the weakening U.S. dollar and a dip in Americans’ purchasing power would become more visible in the weeks ahead.
Still, Griffin stopped short of condemning Trump outright. He stressed the importance of offering constructive criticism, rather than crossing into “just being toxic.”
When contacted by Fortune, the White House did not comment. But a spokesperson told Politico that “President Trump’s America First agenda — including tariffs, tax cuts, and deregulation — has benefited American workers, with historic gains in wages and employment during his first term.”
In his conference speech, Griffin argued that tariffs act like a regressive tax, disproportionately impacting consumers and contradicting Trump’s promise to raise Americans’ standard of living. He also questioned the effectiveness of tariffs in reviving domestic manufacturing, noting that only a small portion of the U.S. workforce is employed in factories today.
On fiscal policy, Griffin expressed skepticism about the administration’s ability to shrink the federal deficit — currently around 6% of GDP — to 3%, especially in light of proposals to eliminate income taxes on tips and overtime pay.
He did credit Trump for halting what he described as a regulatory “deluge” under the Biden administration, calling it a “godsend” for business. However, he admitted it remains unclear how much regulation will actually be rolled back, since some oversight — like ensuring clean supply chains — is necessary for sustainable economic growth.
“I’m not sure how much we’re really going to reduce the weight of regulation,” he concluded. “But stopping the overreach has been a huge win for American entrepreneurship.”
