A growing chorus of disapproval is emerging from influential business leaders as former President Donald Trump pushes forward with a plan to implement sweeping tariffs on goods imported into the United States, triggering anxieties across global markets.
The proposed measures, which would significantly increase duties on numerous nations, have been met with stark warnings that they could inflict serious damage on the US economy. Billionaire investor Bill Ackman, a previous supporter of Trump’s 2024 presidential campaign, cautioned that proceeding with these tariffs is akin to initiating an “economic nuclear war.”
Trump announced last week his intention to impose substantially higher “reciprocal” tariffs on dozens of countries deemed to have significant trade imbalances with the US. These new levies would impact key trading partners like China and the European Union, facing duties of 34% and 20%, respectively.
Ackman stated in a social media post that enacting these tariffs will lead to:
- A standstill in business investment
- Reduced consumer spending
- Damage to the United States’ international reputation, potentially requiring decades to repair
He warned of a “self-induced economic winter” if Trump doesn’t reconsider his approach.
“What CEO and what board of directors will be comfortable making large, long-term economic commitments in our country in the middle of an economic nuclear war?” Ackman questioned, suggesting that Trump is losing the confidence of business leaders worldwide.
The initial 10% tariff on all imported goods already took effect Saturday, and markets are bracing for further disruption as these heightened tariffs come into force this week. Global financial centers experienced significant declines; Asian markets saw substantial drops, while European markets followed suit. Futures contracts indicate another challenging day ahead for US stocks.
The criticism isn’t limited to Ackman. Other prominent figures have voiced their concerns:
- JPMorgan Chase CEO Jamie Dimon warned the tariffs could fuel inflation and potentially trigger a recession, weakening America’s global standing.
- Billionaire Stanley Druckenmiller expressed his opposition to tariffs exceeding 10%.
- Ken Fisher of Fisher Investments characterized Trump’s plan as “stupid, wrong, arrogantly extreme, ignorant trade-wise and addressing a non-problem with misguided tools.”
Even Elon Musk, known for his support of Trump, stated that he hoped to see a “zero-tariff situation” between Europe and the US, advocating for a “free-trade zone” across North America and Europe.
Economists are also expressing concerns. Simon MacAdam of Capital Economics noted that the “sheer uncertainty” surrounding Trump’s tariff policy is likely to cause businesses to postpone investments.
Ackman proposed a 90-day “time out” for negotiations between Trump and trading partners, aiming to address what he perceives as “unfair asymmetric tariffs deals.”
Trump maintains that the tariffs are intended to correct trade imbalances where other countries impose higher tariffs on US goods than vice versa. However, investor skepticism remains high, evidenced by the recent plunges in stock markets worldwide.
