Billionaire hedge fund manager warns that the U.S. is heading toward an ‘economic nuclear winter’

Global markets are reacting strongly to President Trump’s newly announced wide-ranging tariffs, leading to serious warnings from well-known financial leaders. One of them is billionaire hedge fund manager Bill Ackman, who once supported the President but is now predicting a disastrous “economic nuclear winter” if the tariffs aren’t changed significantly.

Ackman shared his warning on X, reflecting the growing worry among financial experts about the possible economic damage from the President’s trade policies.

The tariffs are large and far-reaching, as reported by aljazeera. The U.S. has set a basic 10% tax on all imports, affecting more than 180 countries. However, many other nations face much higher rates—some as high as 50%, including major manufacturing centers in Asia. This broad approach has already led to quick retaliation, with countries like China imposing their own tariffs on U.S. goods. This back-and-forth escalation is raising fears of a full-scale trade war with serious consequences.

Billionaire warns of danger to come from tariffs

The markets have responded quickly and sharply, according to AA. Stocks in Asia and Europe have dropped significantly, with some Asian markets seeing their worst declines in years. The U.S. stock market has also fallen, losing much of its value since its earlier peak this year. These market shifts show how deeply worried investors are about where the global economy is headed under these trade policies.

Ackman isn’t the only one sounding the alarm. Other major financial leaders have shared similar concerns. Jamie Dimon, chairman of JPMorgan Chase, has warned that the tariffs could drive up prices and increase the risk of a recession. Several investment banks have also raised their estimates of a coming recession since the tariffs were announced.

The concerns go beyond just the financial world. Many countries are pushing back with their own measures. Canada, for example, has filed a complaint with the World Trade Organization over new U.S. tariffs on cars. Other nations are asking for exemptions or negotiations, showing how widespread the impact of President Trump’s trade policies has become.

What makes Ackman’s warning stand out is that he used to support the President. His endorsement during the 2024 election was seen as a big deal, showing how much influence the President had in the business world. But now, Ackman’s strong warnings suggest a major change in his view of the tariffs’ economic effects. He argues that by taxing imports from both allies and rivals, the U.S. is losing global trust as a trading partner, which could cause businesses to stop investing.

In response to the criticism, President Trump has defended the tariffs, calling them necessary “medicine” to fix trade problems. He has also brushed off recession fears, saying the U.S. is gaining money from the tariffs. Some of his advisors agree, calling recession predictions “silly” and saying the U.S. is open to talks with countries that want lower tariffs.