Bill Ackman, a billionaire hedge fund manager, cautions President Trump about the potential devastation of his recently announced tariffs, advocating for a pause to avoid severe economic repercussions.
**Billionaire Warns Trump of Economic Crisis Due to New Tariffs**
**Billionaire Warns Trump of Economic Crisis Due to New Tariffs**
A major investor raises alarms over the impact of tariff policies on the US economy.
In a stark warning, hedge fund billionaire Bill Ackman has urged President Donald Trump to reconsider his new trade tariffs, suggesting they could lead to what he terms a "self-induced, economic nuclear winter." As financial markets face volatility following Trump's tariff announcements, Ackman proposed a critical three-month pause for countries to renegotiate their trading terms with the United States to mitigate further damage.
This plea for caution was echoed by Jamie Dimon, the chairman of JPMorgan Chase, who expressed concern that the tariffs could escalate consumer prices in America. Despite such warnings, Trump has defended his aggressive tariff strategy, likening it to necessary "medicine" to remedy past trade inequities that he argues have undermined American interests.
The tariffs have already sent ripples across global markets, causing significant declines in Europe and Asia. As of his recent posts on social media, Ackman acknowledged the validity of Trump's claims regarding the disadvantages faced by the US in international trade but condemned the imposition of "massive and disproportionate" tariffs that fail to differentiate between allied and adversarial nations.
Since endorsing Trump after previously backing Democratic candidates, Ackman's significant influence in the financial sector makes his stance noteworthy as the 2024 presidential election approaches. He described Trump’s tariff actions as an "economic war" that threatens to disrupt investor confidence and the global economy.
Both Ackman and Dimon have articulated their fears that continued tariff policies could lead to a marked inflation increase and an impending recession. Dimon noted in a letter to shareholders that unresolved tariff issues could result in compounded negative effects, becoming increasingly challenging to reverse over time.
As the stock market continues to grapple with uncertainty, Trump's administration appears unfazed, with Treasury Secretary Scott Bessent downplaying recession fears. The full extent of the tariff's impact, particularly the baseline 10% rates and potentially higher tariffs on numerous countries set to begin soon, remains to be seen. The president contends that foreign competitors are eager to negotiate, suggesting that a resolution may be on the horizon following his controversial policy decisions.
