Billionaire investor Bill Ackman has issued a stark warning, saying U.S. President Donald Trump’s aggressive tariff policies risk damaging investor confidence and sparking a global economic crisis. Calling Trump’s actions an “economic nuclear war,” Ackman criticized the imposition of steep and sweeping tariffs, which he says could isolate the U.S. from its allies and disrupt global markets.
While acknowledging that Trump’s trade war highlights real concerns over unfair trade practices, Ackman argued that massive reciprocal tariffs—such as the proposed 54% duties on Chinese imports—could stall business investment and consumer spending. According to the hedge fund manager and founder of Pershing Square, such extreme measures would undermine the U.S.’s global reputation as a reliable trade partner and investment destination.
Ackman urged Trump to take a 90-day pause to negotiate better trade deals and attract investment. He warned that failure to do so could lead to a “self-induced economic nuclear winter,” with severe consequences for businesses and consumers alike.
In a separate statement, Ackman criticized U.S. Commerce Secretary Howard Lutnick, claiming a conflict of interest due to Lutnick’s firm, Cantor Fitzgerald, holding long positions in U.S. bonds, which could benefit from market turmoil.
Despite his criticism, Ackman said he remains long on U.S. markets, reflecting confidence in the country’s long-term potential if the trade situation stabilizes.
Trump, however, reaffirmed over the weekend that there would be no exceptions to the tariffs until the U.S. resolves its trade deficits with major economies. The announcement has rattled global financial markets, with equities losing over $4 trillion in value since last week.
Ackman’s warning highlights growing concern among investors about the potential fallout from escalating trade tensions.