【By Guancha Observer Network, Shao Yun】

After "reciprocal tariffs" caused volatility in the U.S. and global stock markets, two heavyweight figures on Wall Street—well-known hedge fund manager Bill Ackman and Stanley Druckenmiller—rarely criticized U.S. President Trump on April 6. Ackman, who supported Trump's campaign last year, warned that if Trump does not stop, his tariff policies will trigger an "economic nuclear winter."

Ackman is the founder of Pershing Square Capital Management. On the evening of April 6, he posted multiple long articles on X (formerly Twitter), directly stating that Trump's tariff policies are causing him to "lose trust from global business leaders," bringing "serious negative impacts" to the United States and its people, and "seriously damaging" America's international reputation, which will take years or even decades to repair.

"I have great respect for our president and what he has achieved so far, but I do not think he is infallible. That is why I must clearly point out that I firmly believe imposing tariffs on the entire world on April 9—and at rates much higher than those imposed by others on us—is a mistake." He wrote, "...this is not what we voted for."

Photo: Bloomberg

Ackman urged Trump to suspend the implementation of "reciprocal tariffs" for 90 days and resolve so-called "unfair and unequal tariff agreements" through negotiations while attracting new investments into the U.S. Otherwise, Ackman warned, the U.S. would "head toward a self-inflicted economic nuclear winter."

He also directed criticism at U.S. Commerce Secretary Raimondo, calling it a "bad idea" to appoint someone whose company "leverages debt to focus on fixed income" as commerce secretary.

According to Ackman, Raimondo and her previous company, TradeWave, heavily invested in long-term government bonds, so she remains "indifferent" to the collapse of the U.S. stock market and economy. "When our economy implodes, she profits," Ackman wrote in another post. He further stated that anyone advising Trump to use tariffs to negotiate better terms for the U.S. should be immediately fired.

As one of Trump's "top Wall Street supporters," Bloomberg reported that Ackman's latest remarks mark his sharpest divergence from Trump to date. The Wall Street Journal noted that just days ago, Ackman seemed to defend the White House's approach. In a post last Thursday, Ackman wrote: "Sometimes, the best strategy in negotiation is to make the other side believe you're crazy."

Unsurprisingly, Stanley Druckenmiller, George Soros's former protégé and founder of Duquesne Capital, also rarely posted on X on April 6, clearly expressing opposition to Trump's tariffs.

After Trump widely implemented "reciprocal tariffs," netizens dug up a clip from an interview Druckenmiller gave to CNBC in January, where he discussed his views on tariff policies. Druckenmiller replied on April 6: "I do not support tariffs exceeding 10%, and I have made this very clear in the interview you quoted."

Previously, Druckenmiller believed that the risks of tariffs were "overstated" compared to their returns. He stated that as long as American tariffs remained within a 10% range, they were worth the risk. During the CNBC interview, Druckenmiller also said he believed tariffs were merely a form of consumption tax, with some costs borne by foreigners.

In contrast to Ackman, who publicly endorsed Trump after an assassination attempt, Druckenmiller said in November before the election that he neither intended to vote for Republican candidate Trump nor Democratic candidate Harris. However, during the Republican primaries, Druckenmiller financially supported Trump's rival Haley, including co-hosting fundraising events.

On April 2, Trump signed two executive orders at the White House regarding so-called "reciprocal tariffs," announcing that the U.S. would impose a "minimum baseline tariff" of 10% on all trading partners and impose higher tariffs on certain trading partners, ranging from 11% to 50%. The 10% baseline tariff took effect on April 5, while higher tariffs on different trading partners began on April 9.

Trump called it America's "Liberation Day," but economists and investors warned that the "reciprocal tariff" policy not only impacts trading partners but also harms American consumer interests and slows U.S. economic growth.

The Yale University Budget Lab predicted that after the implementation of "reciprocal tariffs," if other countries do not retaliate, short-term personal consumption expenditure prices in the U.S. will increase by 1.7%, and the actual GDP growth rate in 2025 will decrease by 0.6 percentage points; if other countries retaliate, personal consumption expenditure price increases will expand to 2.1%, and the actual GDP growth rate will decrease by 1 percentage point.

Fears of a trade war have already triggered turmoil in global financial markets. According to Dow Jones Market Data, in just two trading days on April 4 and 5, the value of U.S. stocks evaporated by about $6.6 trillion, setting a record high. Since January 17, the day before Trump was inaugurated, U.S. stocks have lost approximately $11.1 trillion.

During the early hours of Asian trading on April 7, U.S. stock futures continued the downward trend seen last week, with Nasdaq futures falling more than 5% and S&P 500 futures falling more than 4%; European stock index futures also plummeted, with Euro Stoxx 50 futures falling more than 4%, DAX futures falling nearly 5%, and FTSE futures falling more than 4%. Stock markets in Japan, Australia, New Zealand, South Korea, and Singapore also suffered heavy losses.

This article is an exclusive piece by the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7490466993813619251/

Disclaimer: This article solely represents the author's views. Please express your opinions by clicking the "like/dislike" buttons below.