Billionaire investor Bill Ackman warns of impending 'economic nuclear winter' due to Trump's tariff policies

In a stark warning, billionaire investor Bill Ackman has claimed that the United States is on the brink of a self-inflicted 'economic nuclear winter' as a direct consequence of President Donald Trump's new tariff policies. Ackman, who was previously an supporter of the Trump administration, expressed his concerns via social media, stating that the imposition of significant tariffs on both allied and rival nations is severely undermining confidence in the U.S. as a reliable trading partner. Trump's latest tariffs, which came into effect with a sweeping 10% levy on all imports from more than 180 countries, have particularly targeted China, resulting in a staggering 54% duty on goods imported from there. In retaliation, Beijing has imposed a 34% tariff on U.S. imports. The impact of these decisions has sent shockwaves through global markets, with U.S. equity indices experiencing a dismal decline of 9.08% in just one week. Ackman has detailed that the business realm operates on trust and confidence, both of which are being eroded by the current administration’s aggressive trade strategy. He warned the dire repercussions this could have for American citizens, especially low-income populations already grappling with economic strains. He suggested that the president should consider pursuing negotiations to address perceived unfair tariff measures, rather than further escalating the ongoing trade war that threatens to plunge the nation into a recession. With J.P. Morgan increasing the likelihood of a U.S. and global recession to 60%, the stakes have never been higher. Additionally, Ackman criticized U.S. Commerce Secretary Howard Lutnick, alleging that his financial interests could conflict with the country's economic health, further emphasizing concerns around leadership in navigating these economic challenges. This unfolding scenario reveals deepening tensions not only within the U.S. but also among global trading partners, making the future of the economy uncertain. Investors should consider these sentiments carefully before making decisions in today's volatile market.