Billionaire investor Bill Ackman has issued a stark warning that the United States is hurtling toward a self-inflicted “economic nuclear winter” as a direct result of President Donald Trump’s ongoing tariff policies.
In a statement shared on the social media platform X, Ackman, a previous supporter of Trump, criticized the administration’s approach to trade, which he described as launching a “global economic war” by imposing tariffs on both allies and adversaries.
Ackman emphasized that these sweeping levies are undermining global confidence in the U.S. as a reliable trading partner, a key factor that could further destabilize the economy.
Trump’s latest tariff measures, which were enacted Wednesday, introduce a 10% baseline levy on all imports, targeting over 180 countries. This move has rattled global markets, with the most significant impact on China. Since January, the U.S. has imposed duties of up to 54% on Chinese imports, prompting Beijing to retaliate with tariffs of its own, amounting to 34% on all U.S. goods.
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Ackman’s concerns are mirrored by the ongoing turbulence in U.S. equity markets, which suffered a significant setback last week, with stock prices falling 9.08%, according to FactSet data. The tariffs have stoked fears of a global economic slowdown, prompting J.P. Morgan to raise the probability of a U.S. and global recession to 60% by the end of 2025, up from 40% previously.
“Business is a confidence game,” Ackman stated. “The president is losing the confidence of business leaders around the globe.” He warned that the long-term consequences of Trump’s trade war would be especially harmful to low-income Americans already struggling economically, undermining the very citizens who supported the president.
Ackman urged Trump to consider a pause in his tariff strategy, proposing that the president use the opportunity to negotiate more favorable trade agreements, rather than further escalate the situation. “Alternatively, we are heading for a self-induced economic nuclear winter, and we should start hunkering down,” he said.
In a separate tweet, Ackman aimed at U.S. Commerce Secretary Howard Lutnick, accusing him of profiting from the economic turmoil resulting from the tariffs. Ackman criticized Lutnick’s financial interests, highlighting what he described as an “irreconcilable conflict of interest” due to his firm’s investment in fixed income. Ackman’s remarks followed Lutnick’s recent comments on CBS, where he reinforced the administration’s commitment to maintaining the tariff strategy, despite the growing economic concerns.
As the trade war continues to unfold, Ackman’s remarks serve as a cautionary note about the broader economic ramifications of Trump’s policies. The call for a reevaluation of the tariff strategy has gained traction among some business leaders and investors, who fear the consequences of continued escalation.
