A billionaire backer of U.S. President Donald Trump has urged the president to pause his recently announced trade tariffs, warning that the move could lead to a “self-induced, economic nuclear winter” if not addressed. Hedge fund manager Bill Ackman, a prominent supporter of Trump’s 2024 presidential campaign, called on the president to take a three-month pause to allow other countries the opportunity to renegotiate their trade relationships with the US.
In a post on X, Ackman described the president’s tariffs as “massive and disproportionate” and criticised them for failing to differentiate between American allies and adversaries.
“…by placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital”, Ackman wrote while insisting that the U.S. could avoid further economic damage by pausing the tariffs and allowing space for negotiations.
“The president now has an opportunity to call a 90-day timeout, negotiate, and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country,” he added.
The tariffs, which include a 10% baseline tax on all imports to the U.S., with rates reaching up to 50% for goods from several countries, have sparked fears of a global trade war. Several countries have already vowed to retaliate, with China among the first to respond, imposing tit-for-tat tariffs on U.S. imports.
Global Market Turmoil and Economic Risks
Ackman’s comments came as global stock markets continued to feel the pressure of the sweeping tariffs imposed by the U.S. president. Share prices in both Europe and Asia continued to fall on Monday, as markets reacted to the tariffs announced last week. Trump has stood by his decision, defending the taxes as necessary to “fix something,” asserting that the move would benefit the U.S. by creating jobs and encouraging investment. Speaking aboard Air Force One on Sunday, Trump asserted that European and Asian countries are “dying to make a deal” and emphasized that sometimes, “you have to take medicine to fix something.”
Ackman’s remarks echo the sentiment expressed by JPMorgan Chase chairman Jamie Dimon, who also cautioned that the tariffs could lead to higher prices for Americans, BBC reported. In a letter to shareholders, Dimon reportedly expressed concern that the tariffs would likely contribute to inflation and increase the likelihood of a recession.
“The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse,” Dimon wrote, according to BBC.
