Bill Ackman urges Trump to pause devastating tariffs

In the United States, a recent wave of new tariffs introduced by President Donald Trump has sparked criticism from various quarters, particularly among former supporters and influential figures. The tariffs, aimed at addressing trade imbalances, have caused significant turmoil in the economy, prompting hedge fund manager Bill Ackman to publicly plead for their suspension. Ackman noted that the increasing uncertainty surrounding these tariffs could potentially drive the economy into a severe recession. He also highlighted the overwhelming response from business leaders who are concerned about the effects of these drastic changes on their operations and supply chains. Elon Musk, the CEO of Tesla and a prominent supporter of Trump's policies, has also voiced his concerns about the imposition of these tariffs. During a recent video conference, he argued for a transition toward a zero-tariff situation between the U.S. and Europe, advocating for the establishment of a free-trade zone. Musk's position directly contradicts that of Peter Navarro, the White House trade advisor, who downplayed the concerns raised by leading businessmen, emphasizing the administration’s focus on domestic manufacturing. Furthermore, an economist whose research underpinned the administration's justification for the tariffs has expressed strong disapproval of the current trade policy, stating that it is fundamentally flawed. The economist highlighted that the tariffs should be scrapped or reduced significantly, as the current measures are based on incorrect assumptions about trade deficits and their implications. He indicated that the tariffs have erroneously targeted at least 10 percent of nearly all exporters to the U.S. The economic implications of these tariffs are profound, affecting stock markets globally and leading to a notable drop in market valuations. As influential figures call for a reassessment of the tariff strategy, the White House remains resolute, asserting that sometimes difficult measures are necessary for remedying trade issues. As the situation unfolds, it becomes apparent that Monday will be pivotal for the U.S. economy, with many stakeholders closely monitoring potential changes in policy.