Billionaire investor Stanley Druckenmiller is reiterating his opposition to excessive tariffs in the wake of President Donald Trump imposing reciprocal tariff rates as high as 54%.

Druckenmiller says in a post on the social media platform X that he does “not support tariffs exceeding 10%.”

The former hedge fund manager says he made his stance on tariffs “abundantly clear” in an interview with CNBC about two months ago. At the time, Druckenmiller said that tariffs of up to 10% would assist the US in raising revenues.

“In a perfect world, I would not be for a 10% tariff, but we’re not in a perfect world. As you know, we have a big fiscal problem – mandatory spending plus interest expenses are literally 100% of revenues right now. And both sides of the aisle have said they are not about to cut entitlements, which is the elephant in the room.

Because of that, we need pay-fors. So our main choices are an income tax and a consumption tax, like tariff. So when I say tariffs are the lesser of the two evils in terms of those two, because we have a fiscal problem, we need revenues. Tariffs will generate revenues.

We also have a private savings problem in this country – they’re far too low. So I think a lot of economists who are out raising the alarm bells about tariffs would probably be fine with a consumption tax.

To me, tariffs are simply a consumption tax that foreigners pay for some of it. Now, there’s a risk of retaliation. But as long as we stay in the 10% range and I think so-called fear of Donald Trump, I think the risks are overblown relative to the rewards. The rewards are not high, it’s more like they’re the lesser of two evils.”

Last week, President Trump signed an executive order imposing a 10% tariff on all imported goods entering the US. He also issued a proclamation detailing “reciprocal tariffs” on dozens of specific countries, effective April 9th, with rates totaling up to 54% on China.

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Venture capital funding for crypto startups has yet to rebound in line with recent regulatory clarity in the U.S. despite showing signs of recovery in the months following President Donald Trump’s election.

According to analysts, the excessive capital inflows during 2021 and 2022 did not result in proportional returns for investors, which has damaged confidence and reduced the VC money inflow.

Underwhelming performance

MV Global partner Tom Dunleavy said that the crypto industry raised excessive capital relative to the number of high-quality projects. 

He noted that venture firms optimized for short-term token gains rather than fostering long-term businesses in an emerging sector. 

Dunleavy added:

“We should be seeing the 21/22 type raises today as the industry now has a very clear long term trajectory but daily mark to market price action has destroyed sentiment.”

The average monthly VC funding for crypto startups was $3 billion in 2021 but slid almost 50% to $1.88 billion the following year. The trend has continued with 2024 only recording $801 million.

Notably, in December 2024, the amount VCs invested in crypto companies surpassed $1 billion for the first time since April of the same year. 

The threshold has been consistently surpassed since then, with $1.2 billion raised in January and $1 billion last month. However, the growth remains subdued considering the improving regulatory environment in the US.

Failed projects and investor skepticism

Mickey Hardy, chairman of Arcadia, echoed Dunleavy’s assessment, highlighting that many projects funded during the peak fundraising years are no longer operational or have abruptly ceased activity. 

This has led to increased caution among investors, as past failures have amplified skepticism regarding the viability of new crypto startups. 

However, Hardy said he believes venture capital activity will resume once the market stabilizes, noting Bitcoin’s (BTC) strengthened position as a recognized asset.

Dunleavy also acknowledged that funding could return but with a significant lag. While regulatory improvements provide a structured environment for crypto businesses, investor sentiment remains subdued due to prior losses and a shift in risk appetite.

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