Billionaire investor Bill Ackman has urged a 90-day “time-out” on President Donald Trump’s reciprocal tariffs, highlighting concerns that the U.S. might be on the brink of a “self-induced economic nuclear winter.”
In an extensive post on X over the weekend, the CEO of Pershing Square Capital Management expressed his support for the president’s stance on addressing a global tariff system that disadvantages the U.S. However, he emphasized that business operates on trust, which is essential for maintaining confidence in the economy.
Ackman, who has shifted his political allegiance to support the Republican presidential candidate for July 2024 after previously backing the Democrats, remarked that Trump has made tariffs a crucial geopolitical issue. He noted that, thus far, the president has effectively brought attention to the matter.
“So far, so good. However, other nations have taken advantage of the U.S. by protecting their local industries at the expense of millions of American jobs and the country’s economic growth,” Ackman stated. He cautioned that the imposition of massive and disproportionate tariffs against both allies and adversaries could undermine U.S. confidence as a reliable trading partner and investment destination.
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Ackman suggested that Trump could use this moment to call for a temporary halt to the tariffs, providing the opportunity to renegotiate unfair tariff agreements, which he believes could spur trillions of dollars in new investments within the U.S.
Failing to do so, Ackman warned, could lead to the U.S. “launching economic nuclear war” against the global community on April 9. He foresees a halt in business investments, decreased consumer spending, and a significant long-term damage to America’s global standing that may take years, if not decades, to repair.
Global markets, already reeling from Trump’s call for Americans to “hang tough” on his tariff strategy, continued to decline on Monday. The White House has indicated plans to introduce higher tariffs on approximately 60 countries deemed the “worst offenders” starting April 9.
In a post on Truth Social on Monday, Trump asserted that “oil prices are down, interest rates are down (the slow-moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long-time abused USA is bringing in billions of dollars a week from the abusing countries on tariffs that are already in place.”
“This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its tariffs by 34%, on top of its already high tariffs. They’ve made enough for decades by taking advantage of the Good Ol’ USA! Our past leaders are to blame for allowing this and so much more to happen to our country,” Trump added.
Ackman warned that the uncertainty surrounding the economy is making it difficult for business leaders to commit to significant, long-term investments in the U.S. “When markets crash, new investments cease, and consumers stop spending, leading businesses to scale back investments and lay off employees,” he explained.
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He also pointed out that small and medium-sized enterprises, along with entrepreneurs, would feel the impact of these tariffs more severely than larger corporations. “Almost no business can absorb an overnight massive increase in costs to their customers, even those without significant debt in a highly leveraged system,” he noted.
“Business is fundamentally driven by confidence. The president is losing the trust of business leaders worldwide,” Ackman remarked. “The implications for our nation and the millions who have supported the president—particularly low-income consumers already grappling with economic difficulties—will be profoundly negative.”
Ackman stated, “This is not what we voted for. The President has a chance on Monday to call for a time-out and address the unfair tariff system. Otherwise, we are heading towards a self-induced economic crisis, and we should prepare ourselves for the worst.”
The investor also expressed his concerns regarding Trump’s Commerce Secretary, Howard Lutnick, implying that Lutnick may not be invested in the stock market or the economy’s stability.
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Ackman suggested, “He and his firm are long on bonds, reaping profits if our economy falters. Appointing a Secretary of Commerce whose firm is significantly dependent on fixed income investments creates a serious conflict of interest.”
