Automation vs. Tariffs: Citadel CEO Dismantles Trump’s Promise of Immediate Jobs Return

Billionaire Ken Griffin, CEO of Citadel, delivered a sharp critique of President Donald Trump’s tariff policy on Wednesday, arguing that expectations for a rapid return of manufacturing jobs to the United States are unrealistic and that the immediate economic impact will be detrimental to American consumers.

According to Griffin, even if the goal of repatriating industrial production were achieved, it would be a “20-year dream, not a 20-week dream.” This underscores the long-term nature of structural economic changes, especially in sectors as complex as manufacturing, which have been shaped for decades by globalization and technological advancement.

Republican Mega-Donor’s Critique of the Trade War

Ken Griffin, whose fortune is estimated at $41.8 billion according to the Bloomberg Billionaires Index, voiced strong criticism of Trump’s trade war during his appearance at the Semafor World Economy Summit. Despite being a major Republican donor during the last presidential campaign, Griffin did not hesitate to call the tariffs “a huge political mistake.”

“Unfortunately, the trade war has become meaningless, which means we’re spending time thinking about supply chains,” Griffin said, while characterizing Trump’s tenure as “mixed” so far. He warned that the U.S. is putting its brand “at risk” and that tariffs could be counterproductive in attracting investment.

One of his most pointed criticisms focused on the impact to consumers: “It’s not right to tell a middle-class or struggling family making $50,000 a year that it’s going to cost 20%, 30%, or 40% more to buy a toaster, a new vacuum cleaner, or a new car.” Griffin’s comments highlight the regressive nature of tariffs, which often translate into higher prices for everyday goods, disproportionately affecting lower- and middle-income households.

The Reality of the Modern Manufacturing Sector

The contrast between Trump’s promise to revive the manufacturing sector and the current industrial landscape is stark. In 1970, more than a quarter of U.S. workers held manufacturing jobs; today, that figure is closer to 8%. The Trump administration has pushed for broad tariffs in hopes of reversing this decades-long decline. Peter Navarro, a senior White House advisor, has stated that the “ultimate goal” is to “fill all the half-empty factories that are now operating at low capacity around Detroit and the broader Midwest.”

However, experts point out that modern manufacturing requires fewer workers with more specialized skills due to automation and artificial intelligence. Today’s factory floors are increasingly populated by robots rather than line operators. This shift means that even if production returns to the U.S., it is unlikely to result in a significant increase in traditional manufacturing jobs.

Immediate Economic Impact of Tariffs

Economic data already show troubling signs. The U.S. manufacturing sector slipped back into contraction in March, pressured by a tariff-driven increase in materials costs. The S&P Global flash manufacturing index for March fell nearly three points to 49.8, its lowest level since mid-2022.

Chris Williamson, chief economist at S&P Global Market Intelligence, noted that “one of the main concerns around tariffs is their impact on inflation,” with business costs now rising at the fastest pace in nearly two years.

Trump’s tariff policy has been particularly aggressive toward the automotive sector. On March 27, the president announced a 25% tax on imported cars and parts. Considering that about half of the vehicles sold in the U.S. are imported and around 60% of the parts used in domestic automobile manufacturing also come from abroad, these tariffs could significantly increase prices for consumers.

Criticism from the Financial Sector

Griffin is not alone in his criticism. He is part of a growing list of prominent financial executives who have expressed concern about the risks of Trump’s tariff policy. Hedge fund manager Bill Ackman, once a vocal Trump supporter, warned of an “economic nuclear winter” if the president does not moderate his approach, while Jamie Dimon, CEO of JPMorgan Chase, cautioned that the long-term effects could be disastrous.

“People are not going to rush to build manufacturing in the U.S.,” Griffin said. “With policy volatility, you actually undermine the very goal you’re trying to achieve.” This sentiment reflects a broader concern that unpredictable trade policies create uncertainty, discouraging the very investments needed to rebuild American industry.