Bill Ackman, the CEO of Pershing Square Capital Management, discussed his views during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations,” recorded in New York on November 28, 2023.
Jeenah Moon | Bloomberg | Getty Images
Billionaire investor Bill Ackman warned that the U.S. is heading towards a self-created “economic nuclear winter” due to the tariff policies implemented by President Donald Trump.
“With imposing vast and uneven tariffs on both allies and adversaries, we are entangled in a global economic conflict that undermines our reputation as a reliable trading partner,” Ackman, who supported Trump during the election, expressed on the social media platform X.
The latest tariffs introduced by Trump took effect on Wednesday, establishing a 10% baseline tariff on imports from over 180 countries, significantly impacting global markets.
China faces the steepest tariffs, with a total of 54% in duties imposed since January by the Trump administration. In retaliation, Beijing has enacted 34% tariffs on all goods entering from the U.S.
Last week concluded with U.S. equities facing a tumultuous period for investors, dropping by 9.08%, according to FactSet data, as Trump’s actions raised concerns about a potential global economic downturn. J.P. Morgan increased the likelihood of a U.S. and global recession to 60% by the year’s end, a rise from the previous 40% estimate.
“Business relies heavily on confidence. The president is losing the trust of business leaders worldwide,” Ackman stated.
“The repercussions for our nation and the countless citizens who backed the president — particularly lower-income consumers already under significant economic pressure — will be profoundly negative. This is not what we anticipated,” the hedge fund manager articulated.
Trump has the chance to pause negotiations aimed at addressing any “unfair” tariff agreements.
“Otherwise, we are heading towards a self-inflicted economic nuclear winter, and it’s time to prepare for it,” he added.
In another tweet, Ackman criticized U.S. Commerce Secretary Howard Lutnick: “He benefits when our economy falters. It’s ill-advised to choose a Secretary of Commerce whose firm is heavily invested in fixed income,” Ackman remarked, calling it an “irreconcilable conflict of interest.”
On Sunday, Lutnick informed CBS that the Trump administration will persist in its reciprocal tariffs against crucial trading partners, despite the global stock market turmoil.
The U.S. Department of Commerce has not yet responded to CNBC’s request for comments.
