Billionaire hedge fund manager Bill Ackman has issued a critical suggestion for the White House, recommending a strategic pause before Donald Trump’s new tariffs come into full effect. According to Ackman, the sudden rollout of these tariffs could spark massive economic uncertainty, pushing the US economy into a possible recession — maybe even a severe one.
Ackman, a well-known supporter of President Trump’s bold trade strategies, voiced his concern on X (formerly Twitter), stating, “The risk of not doing so is that the massive increase in uncertainty drives the economy into a recession, potentially a severe one.”
🔍 Why Ackman Recommends a Pause
Ackman highlights that President Trump has limited time to negotiate any comprehensive trade deals before the tariffs are scheduled for implementation. This time crunch poses a risk not only to the administration’s strategic goals but also to American businesses still adapting to global trade shifts.
He added, “I would therefore not be surprised to wake up Monday with an announcement from the President that he was postponing the implementation of the tariffs to give him time to make deals.”
Ackman credits Trump for drawing global attention to longstanding trade inequalities that have weakened America’s industrial base over decades. However, he believes that rushing the process would do more harm than good.
🏭 Trade Arithmetic Can’t Be Resolved Overnight
According to Ackman, solving decades of discriminatory trade policies isn’t possible within a matter of days. He suggests that a pause in tariff enforcement would provide essential breathing room — not just for President Trump to negotiate better trade agreements, but also for companies to prepare for major changes in their supply chains.
“Why wouldn’t a pause make sense to give the President time to properly resolve this critical issue?” Ackman questioned in his post. He further emphasized that such a pause would allow businesses — both large and small — to plan ahead and adapt operations, avoiding the shock of sudden change.
📉 Warning of a Looming Recession
One of the most pressing concerns outlined by Ackman is the risk of a recession. With increased market volatility and global uncertainty, he warns that an abrupt tariff rollout may lead to a chain reaction impacting consumer confidence, corporate investment, and ultimately, job creation.
He called Monday “one of the more interesting days in our country’s economic history,” hinting at the profound impact the tariff decision may have.
🤝 Trump: The Deal-Maker in Action
Ackman also praised Trump’s core approach as a negotiator. He described the President as someone who views the world through transactional lenses, believing that early dealmakers will likely benefit the most from the administration’s trade strategies.
“Countries that respond with additional tariffs on our goods will be severely punished. The carrot and the stick writ large, Big Boy style… Just pick up the phone. Call the President, and make a deal,” Ackman urged.
📌 Additional Insight
Economists echo Ackman’s concerns, warning that escalating trade tensions without adequate preparation could reverse recent economic gains. Strategic pauses have historically allowed administrations to stabilize markets and avoid abrupt downturns. It remains to be seen if Trump will heed the advice.
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