Bill Ackman Warns of “Economic Nuclear Winter” as Trump’s Global Tariffs Shake Investor Confidence

Billionaire hedge fund titan Bill Ackman has issued a sharp rebuke of former President Donald Trump’s sweeping global tariff policy, warning that the U.S. economy could be on the brink of what he described as a “self-induced economic nuclear winter.” In a striking series of posts on X (formerly Twitter), Ackman, the CEO of Pershing Square Capital Management and one-time Trump supporter, said confidence in the United States as a trading partner is rapidly deteriorating.

“We are in the process of destroying confidence in our country as a trading partner,” Ackman stated.
“This is not what we voted for.”

A Global Tariff Offensive

The criticism comes just days after Trump’s administration announced a 10% baseline tariff on all imports, impacting trade with over 180 countries. China, already locked in a heated trade standoff with Washington, now faces a total of 54% in U.S. duties—the highest of any nation. Beijing responded swiftly by slapping 34% retaliatory tariffs on all U.S. imports, escalating fears of a prolonged trade war with severe consequences for the global economy.

The Market Fallout

Markets have not taken kindly to Trump’s aggressive trade policies. Last week, the S&P 500 plunged by 9.08%, according to data from FactSet, signaling investor anxiety. Meanwhile, JPMorgan Chase hiked its forecast for a U.S. and global recession to 60%, up from 40%, citing the tariff shockwaves.

“Business is a confidence game,” Ackman emphasized.
“The president is losing the confidence of business leaders around the globe.”

This sentiment resonates with other corporate leaders who fear the fallout will be especially damaging for low-income Americans, who already face heightened inflationary pressures and rising living costs.

Warning Signs from the Top

Ackman urged the White House to hit pause and re-engage in trade negotiations rather than pushing through with policies that could stall the economy. Without a strategic pivot, he warned, the U.S. is heading for a downturn that could rival past financial crises in its magnitude and reach.

“We should start hunkering down,” Ackman said, calling the situation an unfolding economic catastrophe.

Conflict of Interest at the Commerce Department?

In a separate post, Ackman called out Commerce Secretary Howard Lutnick, suggesting an “irreconcilable conflict of interest.” Lutnick, the CEO of financial firm Cantor Fitzgerald, “profits when the economy implodes,” Ackman claimed.

“It’s a bad idea to pick a Secretary of Commerce whose firm is levered long fixed income,” he said.

When questioned on CBS’s Face the Nation, Lutnick defended the administration’s position, affirming that the U.S. would not back down from reciprocal tariffs even in the face of plummeting global equity markets.

The Department of Commerce has not issued a response to Ackman’s allegations, according to CNBC.

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What This Means for Global Trade

This latest standoff adds another layer of complexity to an already volatile global trade landscape. With Trump’s tariff policies sparking alarm not only among foreign governments but also among America’s top investors, business leaders and market watchers are now grappling with a pivotal question: Is the U.S. isolating itself from the global economy?

Experts believe that prolonged uncertainty could:

• Erode foreign investment in U.S. markets

• Disrupt supply chains across key industries, from tech to agriculture

• Trigger price hikes on imported goods for American consumers

• Spark currency devaluations in emerging markets dependent on U.S. trade

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The Bigger Picture

Ackman’s warnings are part of a growing chorus urging more balanced trade diplomacy. While Trump’s push for reciprocal tariffs is aimed at correcting perceived imbalances, economists say the execution could backfire without a coherent negotiation strategy.

For instance, a Cato Institute report recently challenged the Trump administration’s tariff math, revealing major discrepancies between claimed foreign tariff rates and actual World Trade Organization (WTO) data. Ackman’s views align with this skepticism, highlighting how such aggressive policies risk alienating allies and triggering economic chaos.

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Final Thoughts

As Washington and Beijing exchange economic fire, the U.S. finds itself at a critical juncture. Will this hardline trade approach usher in fairer international policies—or will it ignite a recession? Ackman’s stark forecast suggests the latter unless policymakers change course quickly.

Stay tuned to ImpactWealth.Org for ongoing updates on the U.S.-China trade conflict, investor sentiment, and what this means for your portfolio in 2025.

Also read: Trump’s ‘Reciprocal Tariffs’ Under Scrutiny as Economists Dispute Accuracy of Claims