Wealthy business leaders are voicing strong opposition to US President Donald Trump’s proposed tariffs on international trade, amidst growing concerns for the global stock market. Notably, billionaire investor Bill Ackman has described these tariffs as akin to an “economic nuclear war.” Last Thursday, Trump announced plans to significantly increase tariffs on countries with substantial trade imbalances with the US, which has already led to a baseline tariff of 10% on all imports.
Ackman cautioned that such tariffs could halt business investment and encourage consumers to curtail spending. He predicted that failing to change course could plunge the economy into an “economic nuclear winter,” damaging America’s global reputation for years. His post on social media resonated widely, garnering over 10 million views, while he pointed out that businesses would hesitate to make long-term investments in such uncertain economic times.
As the tariffs target major trading partners, including China and the European Union, the financial implications are stark. Increases of 34% and 20% on products from these economies are expected, triggering fear among investors that might lead to inflation and a recession. Jamie Dimon, CEO of JPMorgan Chase, echoed these sentiments, warning the tariffs could stifle growth and raise prices.
Other prominent figures in the business world, including billionaire Ken Fisher and billionaire Stanley Druckenmiller, have shared similar critiques. Fisher called Trump’s approach misguided and extreme, and Druckenmiller expressed his reluctance to support any tariffs above 10%.
Elon Musk, typically a Trump supporter, also chimed in, advocating for a “zero-tariff situation” between the US and Europe. Simon MacAdam, from Capital Economics, highlighted that businesses are likely to postpone investment decisions due to the uncertainty surrounding Trump’s tariff policies.
Amidst these developments, Ackman proposed a 90-day pause on the new tariffs to allow for negotiations aimed at correcting perceived unfair trading practices. Trump maintains that his tariff strategy intends to rectify significant trade disparities, claiming that other nations impose higher tariffs on US goods than the reverse.
Despite his rationale, investor confidence is dwindling, with marked declines in stock markets throughout Asia and Europe following the tariff announcements, suggesting widespread concern regarding the future economic landscape.