In a significant move, hedge fund manager Bill Ackman has joined a growing coalition of billionaire supporters of President Donald Trump, urging the White House to reconsider its aggressive tariff policies. As the Trump administration's reciprocal tariffs took effect recently, prompting swift retaliatory measures from China and the European Union, Ackman turned to social media to advocate for a 90-day pause on the tariffs. He emphasized that the president could achieve his trade objectives without jeopardizing the future of small businesses across the nation.
In an extensive post on X, Ackman, who is the founder of Pershing Square Capital Management, issued a stark warning regarding the potential consequences of the ongoing tariff situation. He expressed concern that if the tariffs are not suspended soon, many small businesses could face bankruptcy, followed closely by medium-sized enterprises. Ackman’s plea reflects a growing unease among business leaders regarding the economic impact of these tariffs.
Ackman is not alone in his concerns; he is part of a broader group of billionaires, including those who previously backed Trump's re-election campaign, who are now openly opposing the escalating tariff war. Trump has defended the tariffs, asserting that they are crucial for leveling the playing field for U.S. importers, citing foreign trade practices as a national emergency. However, prominent figures like Stanley Druckenmiller, Kenneth Griffin, and Elon Musk have also voiced their disapproval of the administration's tariff policies.
During a recent event in Miami, Griffin labeled Trump's tariffs as a “huge policy mistake,” a sentiment echoed by Druckenmiller, who stated that he does not support tariffs exceeding 10%. Musk, the CEO of Tesla and a senior advisor to the president, has been particularly vocal, criticizing Trump’s senior trade advisor Peter Navarro for the administration's trade strategies. In a live stream address in Florence, Italy, Musk expressed his hope for a close partnership between the U.S. and Europe, advocating for a potential zero-tariff policy.
As the situation escalates, Ackman has highlighted the dire fears of small business owners. He noted a surge in communications from entrepreneurs expressing anxiety about their ability to manage rising costs due to the new tariffs. In a particularly revealing email, the founder of a cold brew coffee company shared alarming projections: costs for glass bottles from China would rise by 50%, while chai sourced from India would increase by 26%, and coffee imports from countries like Ethiopia, Peru, and Canada would see a 10% hike.
The coffee business owner articulated a critical dilemma: whether clients would accept a near doubling of contract costs overnight or expect the business to absorb the increases. This scenario paints a troubling picture of a potential economic fallout, where businesses may face a lose-lose situation characterized by reduced spending and job losses. In his closing remarks, Ackman urged for a rational approach to these economic challenges, stating, “May cooler heads prevail.”
As the debate over tariffs continues, the call for a reassessment of these policies is becoming increasingly urgent among prominent investors and business leaders, highlighting the need for a balanced approach that considers the well-being of small businesses and the broader economy.
