Billionaire Investor Urges Trump to Delay Tariffs and Avoid Economic Crisis

Bill Ackman, a billionaire and supporter of Donald Trump, has called for a pause on the newly imposed tariffs, warning of severe economic repercussions.

Billionaire hedge fund manager Bill Ackman has recently raised alarms over the U.S. tariffs announced by President Donald Trump, urging the administration to pause their implementation in order to renegotiate trade agreements. Ackman, a notable supporter of Trump as he heads into the 2024 presidential election, described the tariffs as potentially leading to "a self-induced, economic nuclear winter."

He suggested taking a three-month break to allow countries to reassess their trading relationships with the U.S. This warning came shortly after JPMorgan Chase chairman Jamie Dimon echoed concerns about rising prices for Americans due to these new tariffs. Despite the critiques, Trump has defended the tariffs, likening them to necessary "medicine" aimed at revitalizing the American economy through job creation and increased investment.

As markets in Europe and Asia reacted negatively to the trade policy, Ackman reiterated the notion that the current tariffs are significant and indiscriminate, affecting both allies and rivals. He emphasized that the tariffs stem from the belief that America's global trade standing has been weakened over time. The criticism from Ackman is particularly striking as he was once a supporter of the Democratic Party before aligning himself with Trump in July 2024.

Trump's recent tariff plan features a 10% baseline levy on imports, with additional tariffs reaching as high as 50% for numerous countries, especially those in Asia. The international backlash has already seen countries such as China retaliate with their own tariffs on American goods.

The market’s response has underscored fears that Trump's "economic war" could undermine investor confidence, placing the onus on the president to reconsider his strategy. Ackman asserted that Trump has a chance to call a "90-day time out" to negotiate better trade deals, which theoretically could attract trillions in new investments.

Furthermore, JPMorgan's Dimon expressed concerns in a letter to shareholders, indicating that continued uncertainty surrounding the tariffs could lead to inflation and increase the likelihood of recession. He stated that prompt resolution of the issue is essential, as detrimental effects can cumulate over time.

In light of the ongoing turmoil in international markets, Trump maintained that nations worldwide are eager to engage in negotiations. However, his administration has downplayed the risks of recession related to the tariff measures. As the heightened tariff rates are set to take effect soon, all eyes remain on potential responses from global leaders and their repercussions on the U.S. economy.