Trump is losing the confidence of business leaders, billionaire investor Bill Ackman says

Billionaire investor Bill Ackman recently expressed grave concerns about the direction in which the American economy is heading due to President Donald Trump’s aggressive tariff policies. Ackman, who had previously endorsed Trump during the election, took to social media platform X to voice his apprehensions about the potential consequences of the current trade war.

In his statement, Ackman criticized Trump’s decision to impose significant tariffs on both allies and adversaries, describing it as a reckless move that is eroding confidence in the United States as a reliable trading partner. The latest round of tariffs, signed into effect by Trump, imposes a 10% baseline levy on all imports from over 180 countries, causing turmoil in global markets.

Of all nations affected by the tariffs, China has been hit the hardest, with the Trump administration announcing a staggering 54% in duties since February. In response, Beijing retaliated by imposing 34% tariffs on all goods imported from the U.S. The escalating trade tensions have had a detrimental impact on U.S. equities, with the S&P 500 closing down 9.08% last week, fueling fears of a looming global economic downturn.

Ackman highlighted the importance of confidence in business, emphasizing that Trump’s actions are causing business leaders worldwide to lose faith in the U.S. as a trading partner. He warned of severe negative consequences for the country and its citizens, particularly low-income consumers already facing economic hardships. Ackman called on Trump to consider a temporary halt to the tariff negotiations in order to prevent further damage to the economy.

In a separate tweet, Ackman criticized U.S. Commerce Secretary Howard Lutnick, accusing him of profiting from economic turmoil and questioning his suitability for the role. Lutnick, however, reaffirmed the administration’s commitment to maintaining reciprocal tariffs against key trading partners, even in the midst of a global stock market downturn.

As the trade war intensifies, Ackman’s warnings serve as a stark reminder of the potential repercussions of Trump’s tariff policies. The future of the U.S. economy hangs in the balance, and decisive action is needed to prevent a full-blown economic crisis. The Department of Commerce has yet to respond to CNBC’s request for comment on the matter.

In conclusion, Ackman’s outspoken criticism underscores the urgency of addressing the escalating trade war and its impact on the global economy. The stakes are high, and the need for a swift resolution to the current trade tensions has never been more pressing.