President Donald Trump has announced a 90-day pause on reciprocal tariffs for most countries, just hours after billionaire investors, including Bill Ackman, pushed back against his trade policies. Ackman, founder of Pershing Square Capital Management, had spoken out against the tariffs earlier in the day, warning that small businesses could go bankrupt if they weren’t halted immediately.
Ackman joined a growing list of Trump’s billionaire backers, including Stanley Druckenmiller and Kenneth Griffin, who have expressed concerns over the impact of the tariffs on US businesses. The group argues that the tariffs are not only hurting small businesses but also harming the economy in the long run.
The 90-day pause on tariffs is seen as a temporary solution to the escalating trade war with China, which has been particularly damaging due to increased tariffs on Chinese goods. The European Union has also joined the US in pushing back against Trump’s tariffs, proposing countermeasures against steel and aluminum imports.
Trump’s decision comes after criticism from his billionaire supporters, who claim that the tariffs are not necessary for leveling the playing field for US importers. Ackman has argued that the president can “accomplish his objectives without destroying small businesses in the short term.”
The pause on tariffs is expected to have a limited impact, as China has refused to back down from imposing retaliatory tariffs on US goods. The US and China are engaged in trade negotiations over the next 90 days, with Ackman urging China to pick up the phone and negotiate with Trump.
While the announcement is seen as a temporary reprieve for US businesses, it remains unclear whether Trump will abandon his tariff policies entirely or continue to push forward with his economic agenda.
Source: https://abcnews.go.com/Business/billionaire-trump-backer-bill-ackman-issues-dire-warning/story?id=120630956