A billionaire who supports Donald Trump urged the American president to pause the newly announced trade tariffs, warning that otherwise he risks a self-inflicted “nuclear economic winter”.
Against the backdrop of financial market turbulence, hedge fund manager Bill Ackman said that Trump should allow a three-month period during which affected countries can renegotiate their trade relationships with the United States, reports BBC.
Ackman’s warning was supported by another influential voice on Wall Street. JPMorgan Chase chairman Jamie Dimon warned that the new tariffs could lead to price hikes for Americans.
Despite the negative reactions, Trump defended his measures, saying that “sometimes you have to take a bitter medicine to fix something.” He believes that the tariffs will create new jobs and investments in the US, but economists warn that the measure may increase prices and could trigger a trade war.
Trump’s tariffs do not distinguish between allies and adversaries
On Monday, stock markets in Europe and Asia continued to decline in response to Trump’s announcement last week of global tariffs.
In a post on X on Sunday, Ackman supported the idea promoted by Trump that the global trading system has “disadvantaged” the United States. However, he described the imposed tariffs as “massive and disproportionate” and criticized the fact that they do not distinguish between allies and adversaries.
The founder of the investment fund Pershing Square, Ackman became a prominent Trump supporter in July 2024, after previously backing the Democratic Party. His switch to the Republican camp was seen as a strong signal from the business community.
Last week, Trump announced a baseline tariff of 10% for all imports to the US, with tariffs of up to 50% applied to dozens of other countries – including major production centers in Asia.
Several countries have promised retaliations, and China has already responded with its own tariffs on American products.
“An economic war against the whole world”
“Trump has launched an economic war against the whole world, simultaneously,” Ackman commented, warning that this strategy could undermine investor confidence in the US.
He suggested that Trump now has the “opportunity to declare a 90-day pause to negotiate and correct unfair and asymmetric tariff agreements, while also attracting trillions of dollars in investments to the United States.”
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