Billionaire investor Bill Ackman has warned that the United States is on the brink of an “economic nuclear winter,” a perspective he attributes to the tariff policies implemented by President Donald Trump. Ackman, who previously supported Trump during the election, expressed his views on the social media platform X.
“By imposing large and imbalanced tariffs on both allies and adversaries, we risk igniting a global economic conflict that could tarnish the reputation of the United States as a trusted trading partner,” Ackman stated.
The new tariffs, enacted on Wednesday, introduce a 10% base tax on imports from over 180 countries, causing significant disruption in global markets.
Among the nations affected, China faces the steepest tariffs, with the Trump administration having implemented a staggering 54% in duties since February. In retaliation, China has imposed 34% tariffs on American goods.
U.S. stock markets experienced a turbulent week, with the S&P 500 index dropping 9.08%, as reported by FactSet. These developments have intensified concerns regarding a potential global economic downturn, leading JPMorgan to raise the probability of a recession in the U.S. and worldwide to 60%, up from the previous estimate of 40%.
“Business thrives on confidence, and currently, the president is losing the trust of global business leaders,” Ackman remarked.
He further emphasized that the repercussions of these policies would be detrimental for many Americans, particularly low-income consumers already facing economic difficulties. “This is not what we voted for,” Ackman said.
Ackman urged Trump to consider stepping back from tariff negotiations to address what he termed “unfair” trade agreements.
“If not, we are propelling ourselves towards a self-inflicted economic disaster. We should prepare for a tough period ahead,” he warned.
In a follow-up tweet, Ackman criticized U.S. Commerce Secretary Howard Lutnick, suggesting that Lutnick’s financial interests pose a conflict of interest in his role. “It’s problematic to appoint a Secretary of Commerce whose firm stands to benefit when our economy falters,” Ackman remarked.
On CBS, Lutnick defended the administration’s commitment to maintaining reciprocal tariffs against key trading partners, dismissing concerns surrounding the global stock market turmoil.
The U.S. Department of Commerce has yet to respond to inquiries from Finance Newso regarding this matter.
Correction: China faces the highest tariffs, with the Trump administration having announced 54% in duties since February. An earlier version misstated the month.
