Billionaire hedge fund manager Bill Ackman is raising alarms over the recent introduction of tariffs by President Trump, advocating for an immediate halt to these sweeping measures. Ackman emphasises that the current trade policies diverge from what voters expected, jeopardising trust and confidence in the US economy for years to come. “This is not what we voted for,” he stated on social media, pushing for a change in direction to avert severe consequences.
Ackman, originally a supporter of Trump, now believes that the intensified tariff measures could lead to an ‘economic nuclear war’ that would halt business investments and diminish consumer spending, tarnishing America’s standing on the global stage for decades. He voiced his concerns about the abrupt nature of the tariffs, which have instigated a significant downturn in global markets and threaten to escalate tension further.
He proposed a 90-day pause on the tariffs, allowing time for negotiation to address trade disparities while preventing further damage to the economy. The market has already shown signs of strain since the tariffs’ announcement, with a more than 15% drop in the S&P 500 and increasing recession probabilities, thus amplifying calls for an interest rate cut.
Ackman has elucidated that the repercussions of these tariffs particularly harm low-income consumers who are already facing financial hardship. He reiterated, “The consequences for our country and the millions of our citizens who have supported the president are going to be severely negative.” Notably, he clarified that neither he nor his firm stands to benefit from a pause in tariffs. His remarks echo sentiments shared by other financial leaders, like Stanley Druckenmiller, who advocate against tariffs exceeding 10%.
Bill Ackman warns that the tariffs enacted by Trump could lead to severe economic consequences, urging for an immediate pause. He highlights their potential to damage business confidence and consumer spending, advocating for a 90-day timeout to negotiate trade issues. The impact on the market has been significant following the announcement, emphasising the urgent need for action to protect low-income citizens.
Bill Ackman strongly urges the pause of Trump’s sweeping tariffs to prevent economic downturn and restore trust in the US. While supporting reform of trade deals, he warns that indiscriminate tariffs could lead to long-lasting damage and a recession. The financial strain following recent tariff announcements highlights the urgent need for negotiation, particularly for the welfare of low-income consumers, reflecting a broader concern echoed by other prominent investors.
Original Source: www.businessinsider.com
