Bill Ackman warns of ‘economic nuclear winter,’ urges 90-day timeout on tariffs Trump’s approach risks eroding global confidence in the U.S., Ackman said

Bill Ackman Warns of ‘Economic Nuclear Winter,’ Urges 90-Day Timeout on Tariffs

Trump’s approach risks eroding global confidence in the U.S., Ackman says

By Steven Orlowski, CFP, CNPR

Billionaire investor Bill Ackman is sounding the alarm on what he calls an impending “economic nuclear winter” if escalating trade tensions are not brought under control. In a strongly worded statement delivered during a financial conference in New York this week, the Pershing Square Capital Management founder urged policymakers to impose an immediate 90-day timeout on new and existing tariffs to prevent further damage to the global economy.

At the heart of Ackman’s warning is the recent rhetoric and tariff threats from former President Donald Trump, who has promised sweeping trade barriers if re-elected in November. Trump’s proposed policies include a 10% across-the-board tariff on all imports and a 60% levy on Chinese goods, a move he argues will protect American jobs and manufacturing.

Ackman, however, believes this approach is dangerously short-sighted.

“We’re at risk of creating an economic nuclear winter—something that not only freezes global trade but erodes decades of progress,” Ackman said. “If the U.S. goes down this path, we risk losing the confidence of our global partners and investors.”

He emphasized that protectionist policies might offer temporary relief to select domestic industries but ultimately lead to higher prices for American consumers, supply chain disruptions, and retaliatory measures from key trade partners.

“Global confidence in the U.S. economy is based not just on our productivity and innovation, but on the predictability and stability of our policies,” Ackman said. “Unilateral tariff hikes create uncertainty, and uncertainty is poison for investment.”

The hedge fund titan is calling for a 90-day moratorium on all tariff escalations, which he hopes will create breathing room for more constructive trade negotiations. He suggested that the timeout should be used to reengage allies and rebuild trust with traditional trade partners.

Ackman’s comments come at a time when markets are increasingly jittery over the prospect of renewed trade wars. The S&P 500 has seen increased volatility in recent weeks, and global supply chains—already strained by years of pandemic-related disruptions—are bracing for potential shocks.

In addition to his economic concerns, Ackman pointed to the geopolitical implications of Trump’s hardline stance, particularly in the context of the U.S.-China relationship. “If we continue to treat China solely as an adversary instead of a strategic competitor, we risk further fragmentation of the global economy,” he said.

Despite his criticism of Trump’s trade strategy, Ackman stopped short of endorsing any specific political candidate. However, his comments are widely viewed as a warning to voters and lawmakers alike about the real-world consequences of isolationist economic policies.

“Tariffs are not a strategy—they’re a tactic,” Ackman concluded. “And without a coherent long-term plan, we’re gambling with the future of the global economy.”

As election season heats up and trade once again becomes a key issue on the campaign trail, Ackman’s message is a sobering reminder of the stakes involved. Whether Washington will heed his call for a cooling-off period remains to be seen. But one thing is clear: in the high-stakes game of global trade, missteps can have chilling consequences.