Citadel CEO Griffin criticizes Trump's tariffs: These lost jobs will never come back

Ken Griffin, the billionaire founder of Citadel, recently sharply criticized the tariff policies of the Trump administration, asserting that they cannot achieve the goal of bringing manufacturing jobs back to the United States.

He believes that the U.S. should focus on high-value areas such as intellectual property and content creation, rather than being fixated on irretrievable factory jobs.

The significant Republican donor pointed out that while the "dream" of bringing manufacturing jobs back to the U.S. through tariff barriers is commendable, it is destined to fail.

Tariffs Cannot Stop the Trend: Manufacturing Jobs Hard to Return

"These jobs are not coming back to the U.S.," Griffin stated bluntly.

He provided two main reasons: first, the current unemployment rate in the U.S. has dropped to 4%, "the economy has moved forward," and the structure of the labor market has fundamentally changed; second, factory automation is an irreversible trend, and regardless of tariffs, many traditional manufacturing jobs are being replaced by machines.

Griffin believes that while President Trump’s intention to "restore the dignity of workers" is commendable, tariffs are not the correct approach.

Comparative Advantage: The U.S. Should Focus on High-Value Areas

Griffin advocates that America's true competitiveness lies in innovation and creation. "We should focus on creating intellectual property and content," he emphasized, "the wage levels of these jobs are far superior to those of factory jobs producing zippers, appliances, or flat-screen TVs."

He mentioned a recent conversation with a Chinese official in Beijing, who also expressed confusion, questioning why the U.S. would implement policies aimed at increasing low-wage factory jobs, making itself more like past China rather than consolidating its position as a world leader in innovation—something China is striving to catch up and learn from.

Cost of Trade War: Damaging U.S. Interests and Global Relations

Griffin has previously described the escalating trade war as "absurd."

He warned that this approach not only damages America's global brand image but also undermines its relationships with other countries. He criticized the Trump administration for adopting a shortsighted "transaction-oriented mindset," which runs counter to America's long-term national interests.

At the same time, Griffin reflected on the deep-seated issues brought about by globalization.

He admitted that the U.S. has not done enough to help those who have lost their jobs in the wave of globalization, and it is these economically abandoned individuals who form a significant support base for Trump.

He also cautioned that the rise of artificial intelligence (AI) could pose new challenges to white-collar jobs, and how to help this group adapt to the transition will be crucial.

Despite these challenges, Griffin still believes that overall, the U.S. has benefited more from globalization than China. However, the current trade war is "severing the ties between the U.S. and the world."

He concluded by noting that the Trump administration's recent decision to pause the expansion of tariffs provides a valuable "reflection space." This gives the U.S. government an opportunity to reassess how to find a more sensible and sustainable path between "creating jobs and maintaining dignity for those impacted by globalization" and "consolidating and reaffirming America's key role in the world."