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A billionaire supporter of Donald Trump has advised the US president to suspend his recently announced trade tariffs, or he may face “a self-imposed economic disaster”.
In light of market volatility, hedge fund manager Bill Ackman suggested that the president should take three months to facilitate renegotiation of trade relationships with the US.
On Monday, Mr. Ackman’s concerns were shared by another notable Wall Street figure, JPMorgan Chase chairman Jamie Dimon, who warned that Trump’s tariffs could drive up costs for American consumers.
In response to the upheaval, the American president defended his new import duties, asserting, “sometimes you must take medicine to remedy a situation”.
He claims this policy will generate new jobs and attract investment to the country; however, economists caution that it may lead to rising prices for Americans and instigate a trade conflict.
On Monday, share values in Europe and Asia continued to drop as markets reacted to the sweeping global tariffs announced by Trump the previous week.
In a post on X, Mr. Ackman acknowledged Trump’s assertion that the global trade system had “put the US at a disadvantage”.
Nevertheless, he stated that the tariffs imposed by Trump were “enormous and disproportionate,” failing to differentiate between American allies and adversaries.
Mr. Ackman, who founded the Pershing Square hedge fund management firm, became a notable supporter of Trump, a Republican, in July 2024.
Previously, he had endorsed the rival Democratic Party, and his support was perceived as a significant electoral endorsement from the business realm.
Last week, Trump announced a 10% “baseline” tariff on imports to the US, with higher rates up to 50% applying to dozens of countries, including key manufacturing hubs in Asia.
Several countries have pledged to retaliate, and China has already responded with its own tariffs on goods imported from the US.
Ackman remarked that Trump had initiated an “economic war against the entire world at once,” which endangered the confidence of investors in the US.
He suggested that the American president now had “a chance to take a 90-day pause, negotiate and address unfair asymmetric tariffs, and bring in trillions of dollars in fresh investment to our country”.
In his Sunday post, he indicated that the choice was now in Trump’s hands—after having previously urged foreign leaders to “reach out” to Trump for a deal.
As global stock markets continue to decline on Monday, the JPMorgan Chase head voiced his perspective, cautioning of “numerous uncertainties” surrounding the new tariff policy.
In a letter to shareholders, Mr. Dimon noted that the tariffs are “likely to raise inflation and are prompting many to speculate about an increased likelihood of recession”.
“The sooner this situation is settled, the better, as some of the adverse impacts accumulate over time and could be difficult to reverse,” he stated.
Trump’s administration has minimized concerns regarding recession risks. The baseline 10% tariff is already in effect, with elevated rates for certain countries set to start on Wednesday.
While speaking from the presidential plane on his return to Washington DC on Sunday, Trump remarked that European and Asian nations were “eager to negotiate a deal”.
