^{Source: Jeenah Moon | Bloomberg | Getty Images}

Bill Ackman, the outspoken hedge fund titan and founder of Pershing Square Capital Management, has sounded a dire warning about the economic path the United States is heading down. Once a vocal supporter of Donald Trump, Ackman now criticizes the former president’s aggressive tariff policies, suggesting they could plunge the country—and the world—into what he calls an “economic nuclear winter.”

In a detailed series of posts on social media platform X (formerly Twitter), Ackman expressed grave concerns about the broad and aggressive nature of Trump’s newly implemented tariffs and their devastating impact on business sentiment, global trade, and market stability.

Trump’s Tariff Shockwave: Over 180 Nations Affected

On Wednesday, former President Donald Trump signed off on a sweeping trade measure that slaps a 10% tariff on all imports, impacting goods from over 180 countries. These broad-based tariffs have sparked turmoil in global financial markets, triggering selloffs across equities and intensifying fears of a worldwide economic downturn.

China, in particular, has been hit hard, now facing a total of 54% in cumulative tariffs from the U.S. in 2025 alone. In retaliation, Beijing imposed a 34% tariff on U.S. imports, escalating an already tense trade war and disrupting supply chains across multiple industries—from tech to agriculture.

Markets in Panic: Stocks Tumble and Recession Fears Mount

Following the announcement, U.S. markets nosedived. The S&P 500 dropped by 9.08% last week, marking one of the steepest weekly losses in recent years, according to FactSet. Meanwhile, J.P. Morgan raised its estimate for a U.S. and global recession to 60% by year-end, up sharply from its previous 40% forecast.

Ackman didn’t hold back in tying these market jitters directly to Trump’s trade moves:

“By placing massive and disproportionate tariffs on our friends and enemies alike, we are destroying confidence in our country as a trading partner,” he wrote.

Business Leaders Losing Faith

According to Ackman, the deeper issue isn’t just tariffs—it's trust.

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

Ackman argues that Trump’s policies are alienating allies and scaring off investors. The uncertainty created by sweeping trade actions is paralyzing businesses that rely on stable supply chains and predictable global markets.

He further emphasized that low-income American consumers, already dealing with inflationary pressures and wage stagnation, will bear the brunt of price increases caused by tariffs.

“This is not what we voted for,” Ackman said, referencing the working-class support that helped elect Trump.

An Opportunity for a Course Correction?

Despite the bleak outlook, Ackman believes there’s still time for a policy pivot.
He urged Trump to pause the tariff rollouts and re-enter negotiations to address unfair trade practices without antagonizing the global economy.

“Trump still has the opportunity to call a timeout and negotiate. Otherwise, we are heading for a self-induced, economic nuclear winter.”

A Controversial Pick at Commerce

Ackman also took a swipe at Commerce Secretary Howard Lutnick, CEO of Cantor Fitzgerald, questioning his suitability for the role.

“He profits when our economy implodes,” Ackman posted. “It’s a bad idea to pick a Secretary of Commerce whose firm is levered long fixed income. That’s an irreconcilable conflict of interest.”

The comment follows Lutnick’s Sunday interview with CBS, where he reiterated the administration’s commitment to reciprocal tariffs—despite the clear market fallout.

Expert Echoes and Additional Reactions

Other analysts have echoed Ackman’s sentiment.
Mohamed El-Erian, chief economic advisor at Allianz, noted on Bloomberg TV that “broad-based tariffs without precision or strategy are blunt instruments that inflict collateral damage.”
Meanwhile, Goldman Sachs now projects a 0.7 percentage point drag on U.S. GDP growth this year due to rising trade tensions.

The U.S. Department of Commerce has not issued an official response to the criticism from Ackman or other economists at the time of writing.

Final Thoughts: A Time to Rethink

Ackman’s dramatic shift from supporter to critic serves as a wake-up call to policymakers and voters alike. With recession risks mounting, global relationships strained, and equity markets tumbling, the time for recalibration may be now—or the economic costs could be far more severe in the months ahead.

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