Billionaire investor Bill Ackman has raised alarms about the potentially disastrous economic consequences of President Donald Trump’s escalating tariff policy, predicting that it could plunge the U.S. into a self-inflicted “economic nuclear winter.”
Ackman, who is the CEO of Pershing Square Capital Management, expressed concerns that Trump’s tariff actions are damaging global business confidence, with many leaders around the world growing increasingly wary of the U.S. as a reliable trade partner.
“Business thrives on confidence, and the president is losing that trust, both domestically and internationally,” Ackman stated. He condemned the decision to impose steep tariffs on allies and adversaries alike, which he believes is pushing the U.S. into an unnecessary and harmful trade conflict.
Trump’s latest tariff measures, introduced last week, imposed a 10% baseline tariff on imports from over 180 countries, further exacerbating global market instability. The most significant impact is on China, which has been subjected to a 54% tariff on its goods since February. In retaliation, China has imposed a 34% tariff on U.S. imports.
The market responded negatively, with U.S. stock markets closing last week down sharply. The S&P 500 saw a decline of over 9%, sparking fears of a global economic slowdown. In light of the increasing uncertainty, financial institutions have raised the odds of a U.S. and global recession to 60% by the year’s end.
Ackman highlighted that the economic fallout would disproportionately affect low-income consumers, who are already facing significant financial strain. “This is not the outcome Americans voted for,” he said, stressing that Trump’s policy is hurting the very people who supported him.
Ackman urged the president to consider pausing the tariff implementation to allow time for negotiations that could ease tensions with trading partners. “Otherwise, we are heading toward a major economic crisis,” he warned.
In a separate comment, Ackman criticized U.S. Commerce Secretary Howard Lutnick, accusing him of benefiting from economic turmoil due to his firm’s investment portfolio. “It’s a conflict of interest to have someone with such financial stakes overseeing our country’s economic strategy,” Ackman remarked.
Despite the growing criticism, the Trump administration remains resolute, with Secretary Lutnick recently affirming the U.S. will maintain its hardline approach to tariffs, regardless of market repercussions.
As tensions escalate, both domestic and global leaders are left to wonder whether the U.S. can avoid a full-blown economic crisis or whether it will continue down its current path.
