Pro-Trump billionaire Bill Ackman warns of 'economic nuclear winter' as he calls for 90-day pause on tariffs

Importance Score: 89 / 100 🟢

Trump’s Tariff Policies Trigger Global Economic Alarm Bells

Concerns are mounting over the potential for a significant economic downturn as President Trump’s new tariffs send shockwaves through global markets. Billionaire investor Bill Ackman, a former ally of Trump, has cautioned that the world could be facing an “economic nuclear winter” and urged the president to reconsider his trade strategy. The implementation of a 10 percent baseline tariff on imports, excluding goods from Mexico and Canada, has already unsettled markets, with further, higher levies scheduled to impact 57 major trading partners, including the European Union, on April 9.

Market Turmoil and “Black Monday” Fears

The newly enacted tariffs have precipitated a sharp decline in stock markets worldwide. The phrase “Black Monday” trended on social media platforms on Sunday evening, echoing anxieties of a repeat of the severe global market crash of 1987.

Business Leaders Express Deepening Unease

These assertive economic measures by the Trump administration have eroded the confidence of prominent business figures, including Bill Ackman, CEO of Pershing Square Capital Management.

Analysts Signal Potential Market Plunge

Financial experts suggest that indicators of a significant market correction are evident. Futures markets point to a potential opening drop of up to 6 percent for key U.S. stock market indices – the S&P 500, Nasdaq, and Dow – on Monday morning.

Global Stock Markets Already Reeling

Trading in Asia early Monday revealed substantial losses:

• Japan’s Nikkei: Fell as much as 8 percent since the previous Friday.
• Australia’s market: Declined by 6 percent.
• South Korea’s market: Down by 5 percent.
• Taiwan: Experienced a near 10 percent drop.
• Singapore: Plummeted 8.5 percent.
• Hong Kong: Skidded by 10 percent.
• China: Decreased nearly 5 percent.

The S&P/ASX 200 in Australia had already fallen almost 13 percent over the preceding six months.

Trillions Lost in Previous Market Downturn

The market downturn follows the most severe two-day collapse in U.S. stock market history on Thursday and Friday, which saw $6.6 trillion erased from company valuations. Analysts warn this may only be the beginning of a larger economic crisis.

Trump Defiant Amid Economic Concerns

Despite the growing economic anxiety, President Trump has appeared dismissive of the market downturn. He told reporters on Sunday that he has rebuffed requests from world leaders seeking trade negotiations, resolutely pushing forward with his tariff plans.

Ackman’s Warning: “Economic Nuclear Winter”

In stark contrast to the president’s stance, Bill Ackman voiced serious concerns, warning that Trump’s current policies could inflict severe damage on businesses globally.

Ackman: Confidence and Trust Eroded

Ackman argued that while there is broad support for addressing unfair global trade practices, Trump’s tariff strategy is misguided. “The nation is 100 percent behind the president on fixing a global system of tariffs that has disadvantaged the country. But business is a confidence game and confidence depends on trust,” Ackman stated.

He elaborated, “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 as a trading partner, as a place to do business and as a market to invest capital.”

Call for a 90-Day Pause on Tariffs

Ackman urged Trump to implement a 90-day pause on the tariffs to allow for negotiations aimed at resolving unfair trade imbalances. He believes this would stimulate trillions of dollars in new investment in the U.S.

dire consequences of continued tariffs

He cautioned, “If, on the other hand, on April 9th, we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocket books and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate.”

“When markets crash, new investment stops, consumers stop spending money and businesses have no choice but to curtail investment and fire workers,” Ackman explained, highlighting the potential domino effect of the tariffs.

Ackman emphasized the widespread impact, stating, “And it’s not just the big companies that will suffer. Small and medium-size businesses and entrepreneurs will experience much greater pain.”

He further noted the vulnerability of businesses to sudden cost increases, “Almost no businesses can pass through an overnight massive increase in cost to their customers. And that’s true even if they have no debt and unfortunately, there is a massive amount of leverage in the system.”

Ackman: Trump ‘Losing Confidence’ of Business Leaders

Ackman reiterated that business is fundamentally built on confidence, asserting that Trump “is losing the confidence of business leaders around the globe.”

He warned of severe repercussions for Americans, particularly those with lower incomes, stating, “The consequences for our country and the millions of our citizens who have supported the president – in particular low-income consumers who are already under a huge amount of economic stress – are going to be severely negative.”

He concluded his plea by saying, “This is not what we voted for… The president has an opportunity on Monday to call a timeout and have the time to execute on fixing an unfair tariff system… Alternatively, we are headed for a self-induced, economic nuclear winter and we should start hunkering down… May cooler heads prevail.”

Criticism of Commerce Secretary Pick

Ackman also criticized Trump’s nominee for Secretary of Commerce, alleging a conflict of interest due to investments in long-bonds that would profit from an economic downturn. “He profits when our economy implodes,” Ackman stated.

He deemed the appointment a “bad idea” and “an irreconcilable conflict of interest.”

Trump’s Stance: Deficits are “Losses”

President Trump has denied intentionally causing a market selloff and claimed he could not have foreseen market reactions. He maintained his hardline stance on trade, indicating he would only engage in deals that eliminate trade deficits.

“They’re dying to make a deal,” the president asserted, outlining his negotiating terms: “But I said we’re not going to have deficits with your country. We’re not going to do that because, to me, a deficit is a loss. We’re going to have surpluses, or we’re, at worst, going to be breaking even.”

Analyst Warns of “Black Monday” Repeat

CNBC host Jim Cramer cautioned that the U.S. could be “barreling toward another Black Monday,” referencing the 1987 stock market crash. The 1987 crash saw a 22.6 percent plunge in a single day, dwarfing the 2008 financial crisis and the COVID-19 market turmoil.

Cramer stated, “If the president doesn’t reach out and reward countries and companies that follow the rules, then the 1987 scenario… where we dropped for three days and then plunged 22 percent on Monday, becomes highly relevant.”

Economic Advisors Downplay Recession Risks

Conversely, Trump administration economic advisors have minimized concerns about the tariffs’ impact. Treasury Secretary Scott Bessent, speaking on NBC News’ “Meet the Press,” asserted that there was “no reason” to anticipate a recession.

Market Analysts Predict Possible “Bounce”

Some market analysts concur with the possibility of a short-term market recovery. Steve Sosnick, chief investment strategist at Interactive Brokers, suggested, “Sometime this week it’s probably inevitable that we will have an up day.”

Federal Reserve Chair Forewarns of Economic Fallout

However, Federal Reserve Chairman Jerome Powell has issued a stark warning that Trump’s new tariffs will lead to increased prices, job losses, and slower economic growth.

Powell indicated the central bank is facing difficult decisions as it assesses the widening economic repercussions. Wall Street analysts had anticipated the Fed might exceed its projected two rate cuts for 2025 amidst growing recession fears fueled by the tariffs.

Powell stated the central bank would refrain from any policy changes until it gains a clearer understanding of the full economic consequences.

Protests and Business Disruptions Emerge

In response to Trump’s policies, protests have emerged across the United States, and major global companies are modifying their operational plans. Nintendo recently postponed pre-orders for its new console, and automaker Stellantis announced sudden layoffs.

🕐 Top News in the Last Hour By Importance Score

View More Top News ➡️