Trump Ally Turns on Tariffs: Billionaire Bill Ackman Urges a Pause Before It's Too Late

A Donald Trump backer and Pershing Square Capital Management CEO, Bill Ackman, believes the US is '100%' behind the president on fixing the world's tariff system. However, he recently urged Trump in a post on X, formerly Twitter, to temporarily pause the exorbitant tariffs on imports from China.

Ackman believes that a pause would benefit US trade negotiations because the high tariffs currently disadvantage American businesses.

'With the China tariffs in place, time is not our friend as the high tariffs put pressure on American companies — particularly the small ones — and our economy,' Ackman noted. 'If the tariffs are paused, the pressure on the US economy is largely removed, and time becomes our friend and China's enemy.'

US Businesses Diversifying Supply Chains Out of China

Ackman explained that countless US businesses are diversifying their supply chains and manufacturing capabilities beyond China, and the exodus is expected to worsen for the mainland over time.

Ackman addressed Trump by asking him to halt the China tariffs to ease the pressure on American businesses following which, the president will have sufficient time and 'leverage in the world to negotiate a great deal.'

While Ackman sees headwinds for China as businesses shift supply chains to alternative countries, the billionaire investor acknowledged the rising concerns about the economic impacts on both nations.

'The only thing that stops the deluge is China eliminating its tariffs, non-tariff barriers, market access restrictions, SOE subsidies, and IP theft, etc., that make China a bad place to do business,' the hedge fund manager said.

In a 26th April post on X, Ackman mentioned that a tariff pause doesn't mean a sign of weakness because it means both countries have to bring down tariffs on each other. 'It is just common sense,' he said.

'Both countries know that the 145% tariffs have to come down now. They are just trying to manage the diplomacy in such a manner to make clear that it is a mutual decision as opposed to one country going first,' according to Ackman. 'A pause and negotiations should, therefore, begin soon.'

Ackman on How a Tariff Pause Would Play Out

Supposing the US and China agree to a 180-day tariff pause to focus on trade policy negotiations, China would be 'highly incentivised' to make a deal as early as possible. In the meanwhile, the US will have time on its side. Prolonging the tariffs would cause proportional reputational damage to China as a country to conduct business in.

Lower short-term tariffs will allow businesses to efficiently manage the transition out of China. 'It is a near certainty they will leave unless and until a new and highly favourable deal is made with China. Even then, no company will be confident it can rely on China for a major portion of its supply chain. That cake is already baked,' Ackman added.

Ackman previously said the tariffs could lead to an 'economic nuclear winter' and had called for Trump to allow countries three months to renegotiate their trading relationships with America.

Ackman's warning was echoed by Wall Street figures, including JPMorgan Chase chairman Jamie Dimon, who said that Trump's tariffs risked driving up consumer prices significantly.