Bill Ackman and other top financial leaders warn U.S. tariffs may trigger inflation and global economic slowdown.
A major financial backer of former U.S. President Donald Trump has warned that his new tariffs could push the country into an “economic nuclear winter.” Billionaire hedge fund manager Bill Ackman called on Trump to delay the recently announced trade tariffs by 90 days. He said this would give other countries time to negotiate better trade deals with the U.S.
The warning comes as global markets react to the new import taxes. The White House confirmed on Monday that it is going ahead with the plan, dismissing rumors of a pause as “fake news.” Stock markets briefly rallied on reports of a delay, but quickly leveled off after the White House denied them.
Financial Leaders Raise Red Flags
Ackman, founder of the Pershing Square hedge fund, said the size and scope of the tariffs were “massive and disproportionate.” He argued that while global trade had disadvantaged the U.S., Trump’s approach could hurt both allies and rivals.
“Trump has a chance to call a 90-day time out,” Ackman wrote on X (formerly Twitter). “This would help resolve unfair tariff deals and could bring trillions in new investment to the U.S.”
JPMorgan Chase chairman Jamie Dimon also warned about the potential fallout. In a letter to shareholders, he said the tariffs would likely raise inflation and might push the U.S. into a recession. “The sooner this issue is resolved, the better,” he added, warning that the effects could become harder to reverse over time.
Market Fears of Recession Grow
Investment banks are now adjusting their forecasts. Goldman Sachs increased the chance of a U.S. recession within the next year to 45%. This was up from 35% the week before Trump announced the new trade measures.
Larry Fink, CEO of BlackRock—the world’s largest asset manager—shared a similar view. “Most CEOs I talk to believe we’re probably already in a recession,” he said during a meeting of the Economic Club of New York.
The new baseline tariffs—set at 10%—have already been applied to most imports. The U.S. plans to add “reciprocal” tariffs up to 50% on countries seen as taking unfair advantage of American trade policy. These higher rates are expected to begin this week.
White House Holds Firm on Tariff Plan
Despite criticism from Wall Street and foreign governments, Trump remains committed to the policy. Speaking to reporters aboard Air Force One on Sunday, he defended the tariffs.
“Sometimes you have to take medicine to fix something,” Trump said. He believes the tariffs will help bring back U.S. manufacturing jobs and drive investment.
Trump’s advisers have played down the chances of a recession. They argue that the tariffs are needed to protect American workers and industries from unfair competition.
According to Trump, countries in Europe and Asia are “dying to make a deal.” However, trade partners such as China have already announced new tariffs on U.S. goods in response. Trump, in turn, threatened an extra 50% tariff on Chinese products, which could bring total U.S. import taxes on some goods to more than 100%.
Global Response and Risks of Trade War
The growing tariff conflict has triggered fears of a global trade war. Many countries affected by the U.S. measures are looking for ways to respond. Asian manufacturing hubs are expected to take a hit, and the new tariffs have raised tensions between the U.S. and its allies.
Ackman warned that the current path could break investor trust in the U.S. economy. “It’s an economic war against the whole world at once,” he said.
The stock market has shown signs of stress since the announcement. Investors are uncertain about what comes next and how other countries will respond. While some are hopeful for quick negotiations, others fear a drawn-out dispute.
As global markets wobble and inflation fears rise, pressure is building on Trump to reconsider his hardline tariff policy. Experts like Ackman and Dimon are calling for a pause and negotiations to avoid long-term damage to the U.S. and global economies.
With higher tariffs set to roll out this week, the coming days could prove crucial for trade policy and investor confidence.
