Billionaire investor Bill Ackman, a former supporter of President Donald Trump, has issued a stark warning about the administration’s sweeping tariff policies, predicting a self-inflicted “economic nuclear winter” for the United States.
In a series of posts on social media platform X, Ackman criticized Trump’s recent implementation of a 10% baseline tariff on all imports, impacting over 180 countries and sending shockwaves through global markets. He highlighted the disproportionately high tariffs levied on China, now at 54% since January, which have triggered retaliatory measures from Beijing, currently imposing 34% tariffs on all U.S. goods.
“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,” Ackman wrote.
The concerns voiced by the hedge fund manager appear to be echoed by market reactions. U.S. equities concluded a turbulent week last Friday, plummeting by 9.08%, according to FactSet data, as fears of a looming global economic slowdown intensified following Trump’s trade moves. J.P. Morgan has significantly increased the probability of both a U.S. and global recession by the end of the year to 60%, a jump from the previous 40%.
Ackman emphasized the erosion of business confidence on a global scale, stating, “Business is a confidence game. The president is losing the confidence of business leaders around the globe.” He further expressed concern for low-income consumers, who he believes will bear the brunt of the economic fallout. “The consequences for our country and the millions of our citizens who have supported the president — in particular low-income consumers who are already under a huge amount of economic stress — are going to be severely negative. This is not what we voted for,” he said.
Ackman suggested that President Trump has an opportunity to pause and negotiate existing trade imbalances. However, without such a shift, he cautioned, “Alternatively, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down.”
In a separate statement, Ackman also took aim at U.S. Commerce Secretary Howard Lutnick, alleging an “irreconcilable conflict of interest” due to his firm’s position in fixed income, which could potentially benefit from an economic downturn.
Despite the market turmoil and growing concerns, U.S. Commerce Secretary Howard Lutnick told CBS on Sunday that the Trump administration remains resolute in its reciprocal tariff strategy against key trading partners.
The U.S. Department of Commerce has yet to respond to requests for comment on Ackman’s statements and the broader implications of the tariff policies.
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