'Dollar will be weakened': BlackRock CEO Larry Fink's word of caution as Trump refuses to put tariffs on hold

As US President Donald Trump refused to pause sweeping reciprocal tariffs levied by him on several countries including India, BlackRock CEO Larry Fink has a morbid word of caution for the world. 

During an interview with Erik Schatzker at The Economic Club of New York, the BlackRock CEO said that the tariffs would weaken the US dollar and the country's economy is already weakening.

He was answering a question on whether the retaliatory tariffs were a part of some 'Nixonian grand strategy' such as droppping the gold standard to solve America's debt problem.

"I think it's going to weaken the dollar. And look what they would say with certainty. You know, the economy is weakening as we speak," Fink said. He added that the administration needs to focus on pro-growth agendas, something that Trump originally campaigned for. 

"Whatever the tax cut, we need to be deregulating. We need to be streamlining permitting exactly all the things I've been writing about, where we need to get the private capital, private markets to start investing in the United States." 

He further said that if Donald Trump is successful in deregulation and streamlining the process of securing permits, the US would have a major growth agenda. As per Fink, Trump has been concentrating on issues that are quite inflationary and are causing instability in the economy in the short term.

Besides the likely weakening of the dollar, the BlackRock CEO said that we are probably in a recession right now. To substantiate his point further, he gave the example of the American airline industry. 

"Are we in a recession? You, know most CEOs I talked to. We'd say we are probably in a recession right now. Right now, a couple of airline CEOs told me one CEO specifically said, you know, the airline industry is the proverbial bird in a coal mine. Canary in the coal mine. And I was told the canary is sick already." 

He cited air traffic numbers and said that many people like Canadians are not coming to the United States, thus, indicating a "real downturn" in very different sectors.