In a stark warning to the White House, billionaire investor Bill Ackman has expressed grave concerns about the potential for an "economic nuclear winter" resulting from President Donald Trump's recent tariff policies. As the U.S. grapples with the fallout from sweeping new tariffs, Ackman called for a 90-day pause to reassess the approach, arguing that the current trajectory could severely damage the nation’s economic future.
Trump's latest tariffs, which began on April 5, 2025, impose a 10% baseline levy on all imports, affecting over 180 countries. This sweeping measure has already led to significant turmoil in financial markets, with investors shedding approximately $2 trillion in market value last week alone. The situation escalated over the weekend as global stock markets faced dramatic declines, raising fears of a repeat of the infamous "Black Monday" crash of 1987.
Ackman, who had previously endorsed Trump in the 2024 presidential race, cited a growing crisis of confidence among business leaders as a direct consequence of the tariffs. “Business is a confidence game. The president is losing the confidence of business leaders around the globe,” he stated in a post on social media platform X, formerly known as Twitter. He emphasized that the ramifications of continuing down this path could be profoundly negative for the economy, particularly for low-income consumers already facing financial stress.
“This is not what we voted for,” Ackman asserted, highlighting the disconnect between the administration's policies and the expectations of its supporters. He warned that if the tariffs persist, business investment could halt overnight, and consumer spending might dry up entirely. “Almost no business can pass through an overnight massive increase in costs to their customers,” he added, noting that both large corporations and small businesses would suffer significantly.
China has been hit particularly hard by the new tariffs, facing a staggering 54% in duties since January. In retaliation, Beijing has implemented 34% tariffs on all goods imported from the U.S. This tit-for-tat escalation has led J.P. Morgan to raise the odds of a U.S. and global recession to 60% by the end of the year, up from 40% previously.
As markets continued to react negatively, Ackman urged Trump to reconsider his approach. “The President has an opportunity on Monday to call a time out and have the time to execute on fixing an unfair tariff system,” he said. He warned that failing to do so could lead to a long-term economic fallout, with businesses forced to curtail investment and lay off workers.
Amid these concerns, Ackman criticized Trump’s tariff policy as “massive and disproportionate,” arguing that it targets both allies and adversaries indiscriminately, thus undermining the U.S.'s reputation as a reliable trading partner. “By placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country,” he stated.
The dire predictions from Ackman have sparked widespread debate within political and financial circles. Some critics, such as investor Ross Gerber and former chess champion Garry Kasparov, labeled Trump’s trade policies as “garbage policy,” while others echoed Ackman’s concerns about the potential for a trade war to allow non-allied nations to gain geopolitical leverage against the U.S.
As the situation unfolds, financial markets are bracing for further volatility. Futures trading indicated that the three major U.S. stock indices—the S&P 500, Nasdaq, and Dow—could open down by as much as 6% on Monday, April 7. In early morning trading in Asia, Japan’s Nikkei index plummeted by 8%, while markets in Australia, South Korea, and Hong Kong also reported significant declines.
Market analyst and CNBC host Jim Cramer has warned that if Trump's administration does not seek to negotiate with other countries, the risk of a catastrophic market crash similar to the one seen in 1987 looms large. “If the president doesn’t try to reach out and reward these countries and companies that play by the rules, then the 1987 scenario becomes highly relevant,” Cramer said.
In the face of these challenges, Trump's administration has remained steadfast in its tariff strategy. Commerce Secretary Howard Lutnick stated on CBS that the administration would not back down from its reciprocal tariffs, despite the mounting pressure from both domestic and international markets.
As Ackman concluded his remarks, he reiterated the urgency of the situation: “Alternatively, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down. May cooler heads prevail.” The coming days will be critical as the world watches whether the White House will double down on its current policies or reconsider its approach to international trade.
