Bill Ackman, a well-known hedge fund manager, was vocal about his concerns regarding President Trump’s tariff plans. He urged Trump to delay the implementation of these tariffs. Surprisingly, the president responded by announcing a 90-day pause on the tariffs, while maintaining a 10% duty on most countries that took effect recently. Ackman expressed gratitude on social media, thanking the president for this decision.
Trump made this announcement through a social media post around 1 p.m. ET, stating that he would keep the 10% tariffs but would also raise tariffs on China to a staggering 125%. He cited a lack of respect from China as the reason for this increase. The news of the temporary pause had an immediate effect, causing the S&P 500 index to surge over 8% during intraday trading.
During a press conference, U.S. Treasury Secretary Scott Bessent commented that this decision was part of Trump’s strategy and not just a reaction to the market turmoil that followed his initial tariff announcement. The 90-day pause is seen as an opportunity for the U.S. to negotiate trade deals with more than 75 countries. Ackman praised Trump’s decision as a smart move, suggesting it set the stage for more favorable trade discussions.
Ackman, who leads Pershing Square Holdings and supported Trump’s campaign, previously called the launch of these tariffs a “mistake.” He warned that hasty economic changes could lead to a “self-induced, economic nuclear winter.” Other business leaders echoed his concerns about potential economic downturns linked to the tariffs. For example, JPMorgan Chase CEO Jamie Dimon indicated that the risk of a recession had significantly increased, urging that the situation could worsen without progress in trade negotiations.
As trade discussions continue, many are keeping a close eye on the evolving landscape. The current global economy is still recovering from disruptions caused by the pandemic, and any sharp shifts in trade policy could have lasting impacts. Historically, tariff-related tensions have often led to economic uncertainty, and with these recent developments, sentiments are mixed as investors and economists reflect on the potential implications for the U.S. economy.
In this context, experts emphasize the importance of strategic negotiation. Jeremie Penn, an economic analyst, noted, “Trade partnerships are crucial. It’s vital for the U.S. to understand its allies versus its adversaries.” As the 90-day pause unfolds, many are hopeful for positive developments but remain cautious about the path ahead.
Check out this related article: Senator Rubio Announces Release of American Ksenia Karelina by Russia: What This Means for U.S.-Russia Relations
Source linkPresident Trump, The European Union, tariff rate, European Commission, China
