Billionaire Ackman Warns Trump Tariffs Could Cause Economic Nuclear Winter

Billionaire investor Bill Ackman has publicly criticized President Donald Trump's proposed tariffs, warning that they could lead to an "economic nuclear winter." Ackman, who previously endorsed Trump, described the tariffs as a "massive mistake" that could severely damage the global economy and the United States' reputation as a trading partner. He called for a 90-day pause on the new tariffs to allow for negotiations and the resolution of unfair trade deals, which he believes could attract trillions of dollars in new investment.

Ackman's concerns stem from the potential impact of the tariffs on supply chains, prices, and corporate confidence. He argued that businesses would struggle to absorb the sudden increase in costs, leading to a halt in investment and consumer spending. Ackman also expressed worry about the high levels of leverage in the system, which could exacerbate the economic damage caused by the tariffs. He advised Trump to retreat from the intensifying trade war, stating that it could wreak havoc on the economy and take years or even decades to rehabilitate.

Ackman's warnings have sparked debate in political and financial communities. Critics of Trump's trade policies, such as billionaire Ross Gerber and former world chess champion Garry Kasparov, have strongly denounced the proposed tariffs, terming them "garbage policy." Gerber also questioned Ackman's earlier statement that Trump is pursuing a policy of playing "crazy" during negotiations. The uncertainty surrounding the tariffs has left investors anxious and has made markets fragile, with stocks and cryptocurrency prices declining. Numerous companies fear that these trade policies will adversely affect the economy, and the outcome of Trump's response to Ackman's warnings remains uncertain.