President Donald Trump’s recent tariff policies have even made his billionaire backers squirm. Hedge fund manager Bill Ackman, who lent his support to Trump before the 2024 presidential election, said the president should take three months to allow countries to renegotiate their trading relationships with the U.S. He added that not doing so could risk “a self-induced, economic nuclear winter.”
Trump’s escalating tariff wars with China and other trade partners have caused the stock market to spiral with even the “Magnificent 7” being hit. Goldman Sachs recently increased its odds for a recession in the U.S. economy to 45% while other Wall Street heavyweights like J.P. Morgan has raised the odds even higher with a 60% prediction of another recession hitting the U.S.
Despite the shockwaves in the economy and the markets, Trump has defended his new import taxes, saying “sometimes you have to take medicine to fix something.”
READ: Shock policies and global ramifications (April 5, 2025)
A 2025 U.S. recession with high tariffs on China, Canada, and other trade partners could lead to reduced trade volumes. High tariffs would make imports more expensive, decreasing consumer demand for foreign goods and disrupting supply chains. U.S. exports may also decline as tariffs make American products less competitive. The retaliation by China, Canada, and other partners could further strain trade relations.
Companies may shift production to countries with lower tariffs, leading to job losses in the U.S. and potential shifts in global supply chains. The overall effect would be slower economic recovery and increased global trade tensions.
Ackman, the billionaire founder of Pershing Square hedge fund management company, reportedly became a high-profile supporter of Trump, a Republican, in July 2024, while he had previously backed the rival Democratic Party.
READ: Five key repercussions of Trump’s new tariff plan (April 3, 2025)
Who is Bill Ackman?
Bill Ackman is a prominent American investor and hedge fund manager, known for founding Pershing Square Capital Management in 2004. He is recognized for his activist investing approach, where he buys significant stakes in companies to influence their management and strategic decisions.
Ackman has been involved in high-profile investments and public battles, including his successful short position on bond insurer MBIA during the 2008 financial crisis and his push for changes at companies like Target and Herbalife. Ackman is also known for his philanthropy and has been vocal on various economic and social issues.