US billionaire predicts economic nuclear winter due to tariffs

One of the world’s wealthiest individuals, who supported Donald Trump in the election, wrote: “This is not what we voted for.” He warned that the US was losing its reputation and global trust, and urged a three-month delay in the implementation of new tariffs.

Photo: Openverse by Images_of_Money, https://creativecommons.org/licenses/by/2.0/

Dollar bill

The United States, with its new tariffs, is about to launch an economic nuclear war against the rest of the world, which will halt business investment, force consumers to cut spending, and severely damage America’s global reputation – damage that could take years or even decades to repair, billionaire Bill Ackman believes.

The new tariffs will affect almost all sectors of economy – not just large corporations alone. Small and medium-sized businesses will suffer even more, as few can absorb sudden cost increases of this magnitude.

"Business is a confidence game. The president is losing the confidence of business leaders around the globe," he wrote. "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," Ackman wrote.

Ackman agreed with President Donald Trump’s argument that other countries had been taking advantage of the US economically. However, he urged the administration to announce a freeze on the tariffs – which are set to take effect Wednesday, April 9 – and instead:

• Engage in negotiations,
• Resolve unfair, asymmetric trade agreements,
• Attract trillions of dollars in new investment into the US.

"If, on the other hand ... 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," Ackman concluded.

Ackman’s net worth is estimated at $8.9 billion, according to Forbes, ranking him 310th among the world’s richest people. He founded and leads Pershing Square Capital Management, a hedge fund managing $15 billion in assets.

Though a longtime Democratic supporter – who in 2021 even called for Trump to resign – Ackman switched gears just months before the 2024 election and threw his support behind the Republican. Last fall, he even expressed hope that the Democratic Party would collapse.

Russia braces for international economic storm

Russian authorities will do everything necessary to minimize the consequences of the international economic storm triggered by the new American tariffs, said Russian presidential spokesman Dmitry Peskov.

The price of Brent crude oil fell below $63 per barrel for the first time since April 2021, after Saudi Arabia lowered the price of its oil for Asian buyers. Oil prices have been declining since last week amid the imposition of US tariffs and retaliatory measures from China.

“Of course, this is a very important indicator for us, especially for the replenishment of our budget. And naturally, we are closely monitoring the situation, which is currently characterized as extremely volatile, tense, and emotionally charged,” Peskov said in response to a question about risks to the Russian economy.

The presidential spokesman linked the situation to US tariffs targeting most countries around the world, noting that the global economy is under significant strain, with growing negative expectations both among experts and market players.

Details

A tariff is a duty (tax) imposed by the government of a country or customs territory, or by a supranational union, on imports (or, exceptionally, exports) of goods. Besides being a source of revenue, import duties can also be a form of regulation of foreign trade and policy that burden foreign products to encourage or safeguard domestic industry. 'Protective tariffs' are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade.

William Albert Ackman (born May 11, 1966) is an American billionaire hedge fund manager who is the founder and chief executive officer of Pershing Square Capital Management, a hedge fund management company. His investment approach has made him an activist investor. As of June 2024, Ackman's net worth was estimated at $9.3 billion by Forbes. Ackman is a prolific philanthropist and signatory of The Giving Pledge, committing to give away at least 50% of his wealth by the end of his life to charitable causes.