Billionaire Trump backer urges US president to pause tariffs

A billionaire supporter of Donald Trump has urged him to pause trade tariffs. Bill Ackman warned that failing to do so could lead to "a self-induced, economic nuclear winter."

Ackman is a hedge fund manager who supported Trump ahead of the 2024 election. He suggested a three-month pause for countries to renegotiate trade relationships with the US.

On Monday, share prices in Europe and Asia continued to fall. This drop followed Trump's announcement of sweeping global tariffs last week.

Despite the market reaction, Trump defended his new import taxes. He stated that "sometimes you have to take medicine to fix something." He believes these tariffs will create jobs and attract investment.

However, economists warn that prices may rise for Americans and trigger a trade war. Ackman, founder of Pershing Square hedge fund, became a notable Trump supporter in July 2024 after previously backing the Democratic Party.

His support was seen as significant from the business community. On Monday, JPMorgan Chase chairman Jamie Dimon echoed Ackman's concerns about rising prices due to tariffs.

In a post on X, Ackman acknowledged Trump's view that global trade had disadvantaged the US. However, he criticized the tariffs as "massive and disproportionate," affecting both allies and adversaries alike.

Last week, Trump announced a 10% baseline tariff on imports. Some countries face higher rates up to 50%, including key manufacturing centers in Asia.

Many nations have promised retaliation; China has already imposed new tariffs on US goods. Ackman remarked that Trump launched an "economic war against the whole world" which could damage investor confidence in the US.

He suggested that Trump should take "a 90-day time out" to negotiate better tariff deals. In his Sunday post, he indicated it was now Trump's turn to act after urging other leaders to reach out for negotiations.

As global stock markets fell further on Monday, Dimon expressed concerns about uncertainties surrounding the new tariff policy. In a letter to shareholders, he warned that tariffs might increase inflation and raise recession risks.

Dimon emphasized that resolving this issue quickly is crucial. Delays could lead to cumulative negative effects that would be hard to reverse.

Trump's officials have downplayed recession risks. The baseline 10% tariff is already in effect; higher rates for some countries will start Wednesday.

On Sunday, while flying back to Washington DC, Trump claimed European and Asian countries were eager to make deals.