Billionaire hedge fund manager Bill Ackman, a close ally of President Trump, made a dire prediction that the world was on the verge of entering a “self-induced economic nuclear winter” as he urged the Republican leader to postpone his sweeping tariffs.
“The President has an opportunity on Monday to call a time out and have the time to execute on fixing an unfair tariff system. Alternatively, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down,” Ackman wrote in a lengthy X post on Sunday night.
“May cooler heads prevail.”
Ackman, who backed Trump’s presidential campaign, made the grim warning as he claimed the US leader’s decision to impose the 10% tariff on imports was quickly losing the confidence of business leaders around the world.
“The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust,” he wrote. “President [Trump] has elevated the tariff issue to the most important geopolitical issue in the world, and he has gotten everyone’s attention. So far, so good.
“And yes, other nations have taken advantage of the U.S. by protecting their home industries at the expense of millions of our jobs and economic growth in our country,” he continued.
“But, 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. “
“The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust,” he wrote. “President [Trump] has elevated the tariff issue to the most important geopolitical issue in the world, and he has gotten everyone’s attention. So far, so good.
“And yes, other nations have taken advantage of the U.S. by protecting their home industries at the expense of millions of our jobs and economic growth in our country,” he continued.
“But, 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. “
Calling for a 90-day time-out, Ackman urged Trump to renegotiate the “unfair asymmetric tariff deals.”
He warned, too, that launching an “economic nuclear war” would only see businesses grind to a halt, as well as consumers closing up their wallets.
“What CEO and what board of directors will be comfortable making large, long-term, economic commitments in our country in the middle of an economic nuclear war?” he said.
“When markets crash, new investment stops, consumers stop spending money, and businesses have no choice but to curtail investment and fire workers. And it is not just the big companies that will suffer. Small and medium size businesses and entrepreneurs will experience much greater pain. Almost no business can pass through an overnight massive increase in costs to their customers.”
“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 added.
Ackman’s appeal came after Trump’s aggressive tariff proposals continued to batter global financial markets on Monday after he warned foreign governments they would have to pay “a lot of money” to lift the tariffs that he called “medicine.”.
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