A prominent supporter of Donald Trump has issued a stark warning about the president's sweeping new tariff policy, cautioning it could trigger an "economic nuclear winter" if not quickly addressed.
Bill Ackman, billionaire founder of Pershing Square hedge fund and notable Trump supporter, urged the president to pause the recently announced trade tariffs that impose a 10% baseline rate on imports from over 180 countries, with some nations facing duties up to 50%.
"By placing massive and disproportionate tariffs on our friends and enemies alike, we are destroying confidence in our country as a trading partner," Ackman posted on social media platform X. He called for a 90-day timeout to allow countries to renegotiate their trading relationships with the US.
The hedge fund manager's concerns were echoed by JPMorgan Chase chairman Jamie Dimon, who warned the tariffs could increase inflation and raise the likelihood of a recession. "The quicker this issue is resolved, the better, as negative effects accumulate over time," Dimon wrote in a letter to shareholders.
Global markets have tumbled in response to Trump's tariff announcements. China, facing a 54% duty rate, has already retaliated with new 34% tariffs on US goods.
While acknowledging problems with the current global trade system, Ackman emphasized that Trump's approach risks bringing business investment to a standstill. "No CEO or board would feel confident making major, long-term investments in the middle of an economic nuclear war," he stated.
Trump defended his policy aboard Air Force One, saying "sometimes you have to take medicine to fix something." His trade officials maintain the measures will benefit the US economy, though economists warn of rising consumer prices and potential trade wars.
The baseline 10% tariff is already in effect, with higher rates for specific countries set to begin this week. The president claims European and Asian nations are "dying to make a deal," though multiple countries have promised retaliatory measures.