Businessman Bill Ackman critiques Trump's tariffs, joining a growing chorus of critics.
Rewritten Article:
The rich and powerful folks in the business world are giving US President Donald Trump a piece of their mind about his proposal to slap towering trade barriers on America's trading pals, as the financial landscape turns sour worldwide.
Investor extraordinaire Bill Ackman, who backed Trump for the 2024 White House race, yelled fire and brimstone on Sunday, warning that implementing the new tariffs is nothing short of declaring an economic Armageddon.
On Wednesday, Trump announced his intention to impose hefty "reciprocal" tariffs on a slew of countries sporting the highest trade deficits versus the United States.
Ackman waxed poetic on a platform, stating that if these new tariffs become a reality, business investments will dry up, and citizens will tighten their wallets. "We will cause irrevocable damage to our global standing that will take years, if not decades, to repair," he wrote, with the post scoring a colossal 10.6 million views.
In other words, Ackman warned, "We're barreling towards an economic winter, so start stockpiling supplies!"
"Who in their right mind would take a substantial financial risk and make long-term commitments in our country during an economic Armageddon?" Ackman, CEO of Pershing Square Capital Management, questioned. "The president is alienating business leaders around the globe."
A growing number of billionaire moguls and influential business tycoons have already publicly dismissed Trump's tariff agenda recently as fear over its potential repercussions roils the markets.
Jamie Dimon, CEO of JPMorgan Chase, sent chills down investors' spines on Monday when he proposed that tariffs could fan inflation, push the global economy towards a downturn, and weaken America's international standing.
"The recent tariffs will most likely jack up prices and trigger fears of a recession," Dimon warned in a letter to shareholders. "Whether these tariffs will cause a recession remains debatable, but they will undoubtedly slow down growth."
Billionaire Stanley Druckenmiller, founder of the Duquesne Family Office, an investment firm, voiced his disapproval of tariffs exceeding 10% on Monday. Druckenmiller's net worth, reportedly, hovers around $11 billion, According to the Bloomberg Billionaires Index.
Even Elon Musk, the world's richest man and Trump's most ardent follower, expressed hope for a "zero-tariff scenario" between Europe and the US. During a video call with Italy's Deputy Prime Minister Matteo Salvini, Musk shared his dream of a free trade zone between Europe and North America.
Simon MacAdam, deputy chief global economist at consultancy Capital Economics, echoed Ackman's concerns about the uncertainty surrounding Trump's tariff policy.
"If you're a medium-sized or even a large corporation, you'll be hesitant about taking risks," MacAdam said. "If these tariffs might be negotiated down again in a few months, it wouldn't be prudent to invest millions in new infrastructure in the U.S."
Ackman argued that the new tariffs are bursting at the seams, asserting, "This isn't the deal we voted for." He suggested a 90-day cooling-off period during which Trump could negotiate with trading partners to resolve unfair trade imbalances.
Trump has maintained that his tariff strategy is geared towards correcting years of unbalanced trade deals caused by other countries imposing higher tariffs on US goods.
But investors aren't exactly buying his reasoning. Stock markets in Asia and Europe took a nosedive on Monday, with futures pointing towards another punishing day for US stocks following Trump's tariffs announcement last Wednesday.
Enrichment Data:To get a pulse on the sentiments of wealthy business leaders towards Donald Trump's tariff plans, it's crucial to examine historical reactions, as the initial impacts and responses have been well-documented. Since there haven't been significant recent changes in Trump's tariff policies during his presidency, we can focus on these existing reactions.
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Historical Sentiment
- Initial Reactions (2018-2019): Many wealthy business leaders demonstrated concern and skepticism about Trump's tariff policies, particularly in industries heavily dependent on international trade. Worries included potential hikes in expenses for raw materials and goods, price increases for consumers, and the potential for trade wars that could disrupt global supply chains.
- Economic Impact: Some leaders argued that tariffs might aid specific domestic industries, such as steel and aluminum, but overall remained skeptical about whether these benefits would outweigh the broader costs across the U.S. economy.
- Trade Retaliation: Business leaders expressed apprehension about retaliation from trading partners like China, the European Union, and Canada, which could impinge on U.S. exports and overall economic growth.
- Bill Ackman, a significant investor and 2024 White House race supporter of President Trump, warned that imposing new tariffs could lead to an economic Armageddon, causing business investments to dwindle and citizens to tighten their purse strings.
- Jamie Dimon, CEO of JPMorgan Chase, emphasized that tariffs could exacerbate inflation, instigate a global economic downturn, and weaken America's international standing.
- In response to the proposed tariffs, billionaire Stanley Druckenmiller expressed disapproval, suggesting that tariffs exceeding 10% could have detrimental effects on the global economy.
