Billionaire hedge fund manager Bill Ackman is sounding the alarm over President Trump’s new tariff policies, which he warns could lead the global economy into an “economic nuclear winter.” Ackman, a staunch Trump ally with an estimated net worth of $8.9 billion, is urging the president to take a step back and call for a “90-day timeout” on the tariffs in order to avoid potentially catastrophic economic consequences.
Trump’s tariffs, which were announced on April 2, 2025, as part of his so-called “Liberation Day” plan, have sparked fear among economists and financial experts. The new measures impose a 10% baseline tariff on goods from 60 countries, with even higher levies on nations like China (54%), the EU (20%), Japan (24%), and Thailand (36%), all of which will come into effect on April 9. Ackman believes that these tariffs will hurt American businesses and consumers, triggering a global economic crisis.
The Tariff Threat: A Global Economic War
President Trump has framed these tariffs as a necessary step to level the playing field in international trade, claiming that the United States has been taken advantage of by both friends and foes alike. “For decades, our country has been looted, pillaged, raped, and plundered from nations, near and far, from both friend and foe alike,” Trump said in his Rose Garden address. “It’s our declaration of economic independence.”
While many support Trump’s effort to address unfair global trade practices, Ackman argues that these tariffs could have devastating consequences for the U.S. economy. Ackman warns that placing massive tariffs on both allies and adversaries will not only damage America’s standing as a reliable trading partner but could also lead to a full-blown “economic nuclear war” that would hurt businesses, consumers, and investors worldwide.
In his public comments, Ackman stated, “We are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital.” This loss of confidence could lead to a halt in business investments, increased costs for consumers, and a collapse in international trade.
Bill Ackman has issued a dire warning to Donald Trump (Jared Siskin/Patrick McMullan via Getty Images)
The Risks of a ‘Self-Induced Economic Winter’
Ackman believes that Trump has a critical opportunity to pause the tariffs and negotiate better deals with other countries. He is urging the president to call for a “90-day timeout” to allow for discussions that could prevent further economic turmoil. According to Ackman, this period would allow the U.S. to negotiate and resolve “unfair asymmetric tariff deals” while inducing new investments in the country.
However, Ackman warns that if these tariffs go into effect on April 9, 2025, it could spark a global economic crisis similar to the “Black Monday” stock market crash of 1987, when stocks tumbled globally, causing trillions of dollars in losses. Ackman believes that a global trade war would lead to a collapse in business investments, with CEOs and directors hesitating to make long-term commitments in the U.S. due to the instability of the economy.
“The president is losing the confidence of business leaders around the globe,” Ackman stated, warning that both large corporations and small businesses would suffer greatly from the sudden increase in costs. He emphasized that “almost no business can pass through an overnight massive increase in costs to their customers,” meaning that everyday Americans would likely see higher prices on goods, from groceries to cars, as a result of the tariffs.
The POTUS unveiled his tariffs on April 2 (Chip Somodevilla/Getty Images)
The Impact on Consumers and Businesses
For U.S. consumers, the economic fallout from these tariffs could be immediate. As businesses face higher production costs due to the new tariffs, they will likely pass these costs on to consumers, making everyday items more expensive. This could hit lower-income households the hardest, as they may struggle to afford the higher prices on basic goods.
Additionally, businesses that rely on international trade—especially those that import raw materials or finished products from other countries—will face severe financial strain. With the uncertainty surrounding the tariffs, businesses may be forced to scale back investments, delay hiring, or even shut down operations in extreme cases. The ripple effects could lead to job losses and a slowdown in economic growth, which would impact millions of Americans.
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A Call for Diplomacy: The Way Forward
As the world watches the unfolding economic situation, the question remains: will President Trump heed Ackman’s warning and take a step back, or will the U.S. plunge headlong into a global trade war? The stakes are incredibly high, not just for the wealthiest individuals but for everyday Americans who could feel the effects of higher prices and reduced economic activity.
In the coming days, Trump faces a crucial decision. If he chooses to push forward with the tariffs, he may very well risk damaging America’s reputation as a global trading partner for years to come. On the other hand, calling a timeout could allow the U.S. to negotiate better deals and avoid a protracted trade war that could hurt businesses and consumers alike.
As we approach the April 9 deadline, it’s clear that the outcome of this economic showdown will have far-reaching consequences for the U.S. economy and global trade relations. The actions taken in the coming weeks will shape the financial future of not just the country’s wealthiest individuals, but also the lives of millions of ordinary Americans.
