Trump's tariffs an 'economic nuclear war' that must be paused, says Bill Ackman, seeking a 'time out'

Bill Ackman warned that imposing sweeping tariffs on allies and adversaries alike could devastate America’s standing as a trading partner and investment destination.

Billionaire investor Bill Ackman of Pershing Square Capital Management issued a stark warning about Trump administration’s tariff strategy, urging a pause before launching what he calls an 'economic nuclear war' on April 9, even as global share markets are already reflecting the turmoil after China issued retaliatory measures on Friday, sending US futures and Asian indices sharply lower in early trade on Monday morning.

In a strongly-worded statement, Ackman acknowledged that there is widespread support for President Trump's efforts to correct a global tariff system that has long disadvantaged the United States. “The country is 100% behind the president on fixing an unfair system,” he wrote. “But business is a confidence game, and confidence depends on trust,” he said.

Ackman warned that imposing sweeping tariffs on allies and adversaries alike could devastate America’s standing as a trading partner and investment destination. "...yes, other nations have taken advantage of the U.S. by protecting their home industries at the expense of millions of our jobs and economic growth in our country," Ackman added, however, going ahead with the tariffs would 'severely damage' America's reputation, Ackman added.

This is well said and accurate.An important read on @realDonaldTrumps tariff policy. https://t.co/20KqoN0jWq
Bill Ackman (@BillAckman) April 6, 2025

Ackman underscored that President Trump has an opportunity to call a '90-day time out', in order to 'negotiate and resolve' the unfair asymmetric tariff deals, which he said will bring in trillions of dollars of new investment into America.

US President Trump  has said foreign governments would have to pay 'a lot of money' to lift sweeping tariffs that he characterized as 'medicine', as financial markets digest fears relating to the economic and disruptive impact of a tariff war.

"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," said Ackman.

The billionaire investor pointed out that during a markets meltdown, investment and consumption suffers and businesses stop investments. "When markets crash, new investment stops, consumers stop spending money, and businesses have no choice but to curtail investment and fire workers."

Ackman stressed on that the fact that not only large corporations, but small and medium businesses too — many already under heavy debt — would be hit hard by abrupt cost hikes. “This is not what we voted for,” he added, calling on President Trump to avoid a “self-induced economic nuclear winter.”

“May cooler heads prevail,” Ackman said.