As the global economy braces for the ripple effects of President Donald Trump’s sweeping new tariffs, billionaire investor Bill Ackman has stepped into the spotlight, calling for a strategic pause in implementation. While broadly supportive of Trump’s trade agenda, Ackman now warns that the rapid rollout of the tariffs risks plunging the U.S. into a market tailspin and potentially triggering a global recession.
A New Wave of Tariffs Sparks Market Jitters
Under a recent executive order signed on April 5, Trump’s administration introduced a 10% baseline tariff on all imports, with a second wave of more severe retaliatory tariffs targeting countries with large trade surpluses against the U.S., set to begin April 9. These actions mark one of the most aggressive protectionist moves in modern U.S. trade policy.
The response from markets was swift and brutal. Following the announcement of retaliatory tariffs from China a 34% tariff on American goods—the S&P 500 and Nasdaq Composite fell by nearly 5%, wiping out billions in value and sending shockwaves through global equities.
Ackman: Tariffs Are Justified, But Timing Is Critical
Ackman, the founder of Pershing Square Capital Management, has long supported a tougher stance on international trade. He views Trump’s tariffs as a necessary correction to what he sees as decades of unfair trade practices that have undercut American manufacturing and workers.
But in his latest remarks, Ackman has warned that the timing and abruptness of the implementation could backfire. He urged Trump to pause the tariffs temporarily, particularly the retaliatory measures set to activate on April 9, to give time for negotiations and supply chain adjustments.
“This is a rare opportunity to reset global trade relationships,” Ackman noted. “But it must be done carefully. A pause on Monday, April 7, could be a defining moment one that reduces uncertainty and signals a willingness to negotiate, not escalate.”
Global Trade at a Tipping Point
The broader implications of Trump’s tariff strategy are still unfolding. Economists warn that prolonged tariff wars could lead to:
- Disrupted global supply chains
- Inflationary pressure on consumer goods
- Reduced business confidence and investment
- A slowdown in global trade volume, dragging on GDP growth
Already, forecasts are being adjusted. Some analysts suggest U.S. GDP could suffer a mild decline in the long run, especially if retaliatory measures from the EU and Asia escalate further.
Negotiation Over Escalation
Ackman argues that countries willing to negotiate early with the Trump administration will fare better. He frames the situation as an opportunity for foreign leaders to deal directly with the U.S. president, avoid full-blown trade wars, and strike mutually beneficial agreements.
However, if retaliatory actions continue and no adjustments are made, he fears that the economy could slide into a recessionary spiral, fueled by instability, lost investor confidence, and declining international cooperation.
What’s Next for the U.S. Economy?
The next few days could prove pivotal. As the global economy teeters on the edge of uncertainty, April 7—when Ackman proposes a strategic pause—could mark a turning point for Trump’s trade legacy.
Whether the administration chooses to push ahead or pull back will shape not only the trajectory of the U.S. economy but also global perceptions of American leadership in trade policy.
Ackman’s message is clear: Tariffs are a powerful tool—but only when wielded with strategic patience and economic foresight.
