President Donald Trump’s sweeping new tariffs have drawn strong criticism from some of his top business allies, sparking fears of an economic downturn and global trade conflict.
Billionaire Backers Break Ranks
Prominent financier Bill Ackman, who supported Trump’s 2024 campaign, labeled the tariffs a “major policy error.” In a post on X (formerly Twitter), Ackman urged Trump to pause the rollout for 90 days, warning of dire economic consequences.
“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,” Ackman wrote. “This could trigger an economic nuclear war.”
Elon Musk, Jamie Dimon Also Sound Alarm
Tesla CEO Elon Musk, a key Trump adviser, also criticized the policy. During a video call with Italian Deputy Prime Minister Matteo Salvini, Musk called for a “zero-tariff situation” between the U.S. and Europe.
Later, Musk mocked Peter Navarro, Trump’s senior trade counselor and one of the biggest tariff advocates, saying:
“A PhD in Econ from Harvard is a bad thing, not a good thing,” in a sarcastic jab on X.
Meanwhile, JPMorgan Chase CEO Jamie Dimon, once supportive of Trump’s economic stance, warned investors this week that the tariffs could lead the U.S. into a recession.
“Whether or not the tariffs cause a recession remains in question, but it will slow down growth,” Dimon said in a letter to shareholders.
Earlier this year, Dimon had been more optimistic, saying on CNBC, “If it’s a little inflationary but it’s good for national security, so be it.”
Markets React Sharply
Markets have been volatile since Trump announced the new tariffs last week. The Dow Jones Industrial Average suffered its worst week since 2020, and the Nasdaq entered bear market territory. Monday’s sell-off extended those losses.
The new tariff structure includes:
- A flat 10% tariff on all imports.
- “Reciprocal” tariffs on around 60 nations that currently impose duties on U.S. goods.
Read More: China not backing down as fresh US tariff threat pushes tensions to the brink
Trump: “Tough but Fair” — But Threatens China
Despite some signals of negotiation, Trump showed no signs of backing down.
“Countries from all over the World are talking to us,” Trump posted on Truth Social. “Tough but fair parameters are being set.”
However, he also threatened an additional 50% tariff on China unless the country withdraws its retaliatory 34% tariffs—retaliation to the U.S.’s own 34% tariff announced earlier.
If enacted, this would bring total U.S. tariffs on Chinese imports to 104%.
Investor Sentiment Shifts
Billionaire Stanley Druckenmiller, who previously praised Trump’s election as a win for business, has also changed his tune.
“I do not support tariffs exceeding 10%,” he wrote on X.
Just months earlier, he said CEOs were “giddy” over Trump’s return, adding, “We’re probably going from the most anti-business administration to the opposite.”
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