Hedge Fund Manager Urges Trump to Pause Tariffs
Billionaire hedge fund manager Bill Ackman has urged U.S. President Donald Trump to temporarily halt his escalating tariffs, acknowledging that his initial assumption of “economic rationality” was misguided. In a candid social media post, Ackman expressed concern that the tariffs are not only harming global relations but also eroding confidence in the U.S. as a business partner. “We are in the process of destroying confidence in our country as a trading partner,” Ackman warned, calling for a 90-day pause to allow for negotiations and avoid the looming economic consequences of continued tariff escalation.
The Case for a “Time Out” on Tariffs
Ackman framed the tariff conflict as an economic “confidence game,” stressing that the U.S. is risking its reputation with both allies and adversaries. While Ackman supported the president’s goal of addressing the global tariff system, he argued that by imposing severe tariffs on both friends and foes, Trump is jeopardizing future business investment in the country. He warned that an “economic nuclear war” on April 9 would lead to market crashes, stalled investments, and consumer hesitation, further hurting American businesses, especially small and medium-sized enterprises. “When markets crash, new investment stops,” Ackman said, predicting widespread economic distress.
Impact on Businesses and Consumers
Ackman pointed out that business confidence, crucial for economic growth, is plummeting as a result of the tariffs. He emphasized that business leaders, wary of the long-term implications of trade wars, will hesitate to commit to major investments in the U.S. “What CEO and what board of directors will be comfortable making large, long-term, economic commitments in our country in the middle of an economic nuclear war?” Ackman asked. He also highlighted that the working class, particularly low-income consumers already struggling, would bear the brunt of the economic fallout from the tariffs.
Ackman Reflects on His Misjudgment
In his follow-up comments, Ackman admitted to misjudging Trump’s approach to the economy. “I assumed economic rationality would be paramount,” he wrote, acknowledging that his expectations for Trump’s economic strategy were misguided. While Ackman has been blunt about the situation, he stressed that his concern is not political but economic. His call for a pause in the tariff war reflects his belief that the U.S. economy can still recover if cooler heads prevail and the administration shifts course.
A Crucial Crossroads for U.S. Economic Strategy
Ackman’s warning underscores the critical moment the U.S. finds itself in as Trump’s trade policies intensify. While the president’s objectives may be rooted in restoring American manufacturing and addressing trade imbalances, the fallout from continued tariff escalation could result in significant damage to the global and domestic economy. As Ackman points out, a temporary pause in the tariffs could provide an opportunity for negotiation, helping to restore confidence and prevent further economic downturn. Whether or not the administration listens to these calls for a pause remains to be seen, but the stakes for the U.S. economy are undeniably high.
