Billionaire Bill Ackman gives 7-word warning on tariff war | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Markets paused their slide on April 7 after a volatile week sparked by President Donald Trump’s announcement of a “reciprocal tariff” of at least 10% for many countries.

The S&P 500 dipped 0.23%, while the tech-heavy Nasdaq gained 0.1%.

Uncertainty still hangs over Wall Street. Investors are now wondering if the worst of the selloff is over or whether a global trade war is just beginning.

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Higher tariffs mean companies will pay more for imported goods, pressuring them to either pass on the higher cost to consumers or reduce their profit margin. This could likely push the already stubborn inflation higher and further slow economic growth.

On April 7, Trump threatened to impose an additional 50% tariff on China’s imports if Beijing did not withdraw its retaliatory tariffs on U.S. exports. Prior to that, he imposed a 34% reciprocal tariff on Chinese goods, and Beijing retaliated with the same tariff rate.

Aside from China, the U.S.’s biggest economic rival and third-largest trading partner, Trump has opened the door to negotiations with other countries. “Negotiations with other countries, which have also requested meetings, will begin taking place immediately,” Trump said.

But satisfying Trump won’t be easy.

Last week, Trump talked with Vietnam, where half of Nike’s footwear is made, to discuss the possibility of lowering the tariff to zero. However, U.S. senior trade counselor Peter Navarro rejected this possibility, saying: “This is not a negotiation… this is a national emergency based on a trade deficit that’s gotten out of control because of cheating.”

The European Commission said it had offered a “zero-for-zero” tariff deal to avoid a trade war and agreed to prioritize talks. Meanwhile, the region is preparing 25% retaliatory tariffs on select U.S. goods.

With Wall Street waiting for the White House and the U.S.’s global trading partners to respond, this week may mark a critical crossroads for the global economy and markets. One billionaire has warned of potential damages that could take decades to rehabilitate.

Ackman laid out a grim sequence: halted investment, consumer pullback, evaporating global trust, and widespread layoffs.

Image source&colon; Sylvain Gaboury/Patrick McMullan via Getty

“We are heading for economic nuclear winter,” Bill Ackman said

Trump argued that higher tariffs — which could end decades of globalization — are critical to rejuvenating domestic manufacturing sectors and creating a level playing field with other countries that impose tariffs on U.S. exports.

“Sometimes you have to take medicine,” Trump said.

Bill Ackman, however, warns that the tariff could undermine trust in the U.S. as a reliable trade partner.

Ackman is the founder and CEO of hedge fund Pershing Square. He has been active in both trading and social media and has increasingly used his online presence to share market commentary and political takes.

“By placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital,” Ackman said in an X post.

Ackman laid out a grim sequence of consequences: halted investment, consumer pullback, evaporating global trust, and widespread layoffs.

“If on April 9 we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocketbooks, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate,” he warned.

Ackman said if Trump does not call a time out and fix the unfair tariff system, the U.S. will head for “a self-induced, economic nuclear winter.”

There is still time for a ceasefire

Ackman has argued for a more careful approach toward tariffs and called for a pause in reciprocal tariff implementation for 90 days.

“There is still time for a ceasefire before millions of people get hurt,” he said.

However, the White House on April 7 dismissed reports of a possible 90-day pause in the president’s tariff campaign as “fake news.”

Ackman was previously known for years as an activist investor, with one of his most famous investments being the Canadian Pacific Railway (now Canadian Pacific Kansas City (CP) ), where he profited roughly $2.6 billion between 2011 and 2016.

In 2022, Ackman said he had “permanently retired” from activist short-selling.

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The hedge fund manager runs a concentrated portfolio, typically holding 8–12 stocks. In Q4 2024, his largest buy was 2.5 million shares of Nike (NKE) , followed by 2.6 million shares of Brookfield Corp. and 2.9 million shares of Seaport Entertainment (SEG) .

In February, Ackman disclosed that he began purchasing Uber (UBER) shares in January and now owns 30.3 million shares, which are valued at roughly $2 billion. That purchase would make Uber the hedge fund’s largest equity position.

Even as Ackman warns of trouble ahead, he hasn’t lost faith in the country’s resilience.

“Yes. I am proudly long America,” he said.