Business Leaders Urge Trump to Reconsider Tariffs
Billionaires Jamie Dimon and Bill Ackman have raised alarms over the potential economic fallout from President Donald Trump’s tariffs, as global markets react negatively to escalating trade tensions. The stock market opened sharply lower on Monday, reflecting widespread investor fears. Ackman, a supporter of Trump, has called for a temporary halt to the tariffs to negotiate fairer trade deals, while Dimon warned of possible economic hardships.
Global Markets React to Tariff News
The announcement of reciprocal tariffs has sent shockwaves through financial markets worldwide. Major stock exchanges in Asia and Europe experienced significant sell-offs, with Wall Street following suit as trading began on Monday. Investors are increasingly concerned about the implications of the trade war, which could lead to a slowdown in economic growth. The uncertainty surrounding the tariffs has created a volatile environment, prompting many to reassess their investment strategies.
Ackman has urged the president to take a “90-day timeout” to negotiate better terms, emphasizing the need for a resolution to avoid further economic damage. He highlighted that the current tariff calculations may be flawed, suggesting that they exaggerate the impact on other nations. This miscalculation, he argues, could lead to misguided policies that harm the U.S. economy.
Ackman Calls for Correction in Tariff Calculations
In a pointed critique, Ackman has called on Trump’s advisors to recognize what he describes as a significant error in the tariff calculation formula. He claims that the administration’s method inflates the perceived size of other countries’ tariffs, which could lead to misguided decisions. “The President’s advisors need to acknowledge their error before April 9th and make a course correction before the President makes a big mistake based on bad math,” he stated.
Ackman further warned that the tariffs could plunge the economy into a “self-induced, economic nuclear winter.” He cautioned that a market crash would halt new investments, reduce consumer spending, and force businesses to cut back on hiring and investment. This downturn would not only affect large corporations but also small and medium-sized enterprises, which may struggle to absorb sudden cost increases.
Dimon Highlights Risks of Tariffs
In his annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon expressed concern over the potential economic consequences of the tariffs. He acknowledged that while it remains uncertain whether the tariffs will lead to a recession, they are likely to slow economic growth. Dimon warned of inflationary pressures on both imported and domestic goods as input costs rise. He pointed out the unpredictability of retaliatory measures from other countries, which could further destabilize markets. “The quicker this issue is resolved, the better,” Dimon advised, emphasizing the need for clarity to restore investor confidence. Although he refrained from directly criticizing Trump, his comments reflect a growing unease among business leaders regarding the administration’s trade policies.
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