As global markets reel from the shockwaves of President Donald Trump’s sweeping new tariffs, panic is setting in across Wall Street, international trading desks, and political circles. In a dramatic turn of events, billionaire hedge fund manager Bill Ackman, a former Democrat-turned-Trump supporter, issued a grave warning: “We are heading toward a self-induced, economic nuclear winter.”
Ackman, founder of Pershing Square Capital, called for a 90-day pause on the tariffs to allow countries time to renegotiate. His call echoed across the financial world just as global equity markets shed more than $5.4 trillion in value in two days — a collapse Bloomberg described as a “five-alarm fire.”
What Happened?
Last week, President Trump unveiled an aggressive new tariff plan, including:
- A 10% baseline tariff on all imports to the U.S.
- Tariffs of up to 50% on goods from dozens of countries, including major Asian manufacturing nations.
He claimed the tariffs were necessary “medicine” for a broken trade system that has “disadvantaged” the U.S. “The operation is over. The patient lived and is healing,” Trump posted on his social platform. But not everyone shares his optimism.
Read Also: Trump Created an Economic Sinkhole. He Doesn’t Care
Wall Street Rings the Alarm
Prominent financial leaders are now openly challenging the administration’s approach:
- Bill Ackman: “The tariffs are massive and disproportionate. They don’t distinguish between allies and adversaries. Trump has launched an economic war against the entire world.”
- Jamie Dimon, CEO of JPMorgan Chase: “These tariffs will likely increase inflation and raise the odds of a recession. The longer this goes on, the harder it will be to reverse the damage.”
Dimon, in his annual letter to shareholders, warned that uncertainty around the new trade policy is destabilizing the markets and undermining investor confidence.
Chaos and Contradictions in Trump’s Strategy
According to Bloomberg Opinion, Trump’s tariff formula was finalized just hours before its announcement and includes taxes on exports from places as obscure as uninhabited islands near Antarctica. One White House official described Trump as being at the “peak of not giving a f— anymore.”
The tariffs, critics argue, are not grounded in economic strategy but in grievance politics, performance, and retribution. Aides say Trump is focused on fulfilling campaign promises, even if it means collateral damage to global markets and the American economy.
“There’s no strategy. It’s about revenge, control, and headlines,” Bloomberg’s Timothy O’Brien writes.
International Fallout
The global reaction has been swift and severe:
- Asian stocks have suffered their worst drop in decades.
- China has already retaliated with tariffs on American imports.
- Allies like Europe and Japan have expressed outrage and are considering countermeasures.
The fear now is a full-blown global trade war, one that could derail economic recovery and usher in long-term instability.
Will Trump Blink?
Ackman believes there is still hope. He urged Trump to use this moment to pause, renegotiate, and stabilize markets.
“This is not about abandoning your goals,” Ackman said, “It’s about securing them the right way. A timeout now could lead to trillions in new investment — or chaos if ignored.”
Whether Trump will heed the warnings is uncertain. As of Sunday, the President appeared unfazed, posting a video of himself golfing while markets burned.
Read More: US Stock Market Crashes in April 2025: What’s Behind the Historic Sell-Off?
Final Thoughts
Trump’s tariffs have opened a new chapter in global economic history — one of uncertainty, fear, and political brinkmanship. Whether this ends in a stronger America or a deep recession depends not just on markets and policies, but on whether President Trump chooses diplomacy over defiance.
