NEW YORK (AP) – Hedge fund manager and former Donald Trump supporter, Bill Ackman, has urged for a 90-day pause on the U.S. tariff escalation scheduled to begin on April 9. The call comes as global markets feel the impact of the current U.S. trade policies. Ackman warned that without a halt, the country could face an “economic nuclear winter” leading to decreased business confidence, stalled investments, and widespread job losses.
In a social media post, Ackman expressed concerns about the declining confidence of business leaders worldwide in the current administration. President Trump recently announced plans to impose a 25% tariff on foreign-made automobiles, institute a 10% minimum baseline tariff on imports, and introduce reciprocal tariffs targeting countries with taxes on American goods.
Economists quickly criticized the administration’s trade deficit formula as simplistic and potentially harmful. Ackman argued that the significant tariffs placed on both allies and adversaries alike could harm the U.S.’ reputation as a reliable trading partner.
The effects of the eroding business confidence are evident in the markets, particularly in the cryptocurrency sector. Bitcoin (BTC) witnessed a 7.6% drop to $77,300 on Monday, wiping out close to $70 billion in market capitalization. Ethereum (ETH) also experienced a 14% decline to $1,555 in a single day, according to CoinGecko data.
Market analysts voiced concerns about the vulnerability of the cryptocurrency market to manipulation in the wake of changing global economic policies. Tracy Jin, COO of MEXC Exchange, highlighted the potential for further uncertainties and a possible loss of trust in Bitcoin as a safe-haven asset.
Given the current market conditions, many anticipate a negative trajectory for Bitcoin, with predictions of a drop to the $52,000-$56,000 range by summer. Ethereum, facing additional challenges beyond tariffs, may face even greater obstacles in the coming months.