Josh Weiner
In a dramatic shift, President Donald Trump is pausing tariffs after a growing backlash from his billionaire supporters, including hedge fund manager Bill Ackman. The pause comes just hours before new reciprocal tariffs, set to take effect Wednesday, could have delivered a significant blow to small businesses.
Ackman, the founder of Pershing Square Capital Management, took to social media early Wednesday, urging Trump to delay the tariffs. He argued that the president could still achieve his objectives without jeopardizing small businesses in the short term.
“If the president doesn’t pause these tariffs soon, many small businesses will go bankrupt,” Ackman warned. “Medium-sized businesses will follow.”
His plea was part of a larger chorus of concerns from fellow billionaires, some of whom had supported Trump’s re-election bid. Trump’s tariff policy, which he claims is essential for leveling the playing field for U.S. importers, has increasingly come under scrutiny as it escalates into a trade war.
Though it’s unclear if the backlash from his wealthy allies influenced the decision, the president announced a 90-day pause on the tariffs, effective Wednesday afternoon. However, China was excluded from the pause, as Treasury Secretary Scott Bessent cited a lack of willingness from Beijing to negotiate a deal.
Ackman wasn’t alone in expressing frustration. Other notable investors, including Stanley Druckenmiller, Kenneth Griffin, and even Tesla CEO Elon Musk, who has advised Trump on trade issues, have also criticized the tariffs. Griffin, speaking at a Miami event on Monday, called the policy a “huge mistake,” while Druckenmiller has called for tariffs to remain below 10%.
Musk, a vocal critic of Trump’s trade advisor Peter Navarro, accused him of ineptitude, and Musk has long advocated for zero-tariff policies with Europe. He’s called for stronger economic partnerships between the U.S. and Europe, particularly in the automotive sector.
The latest round of tariffs included a 10% levy on all U.S. trading partners, effective Saturday, and additional reciprocal tariffs on more than 60 countries. Despite these tariffs going into effect early Wednesday, Trump’s decision to pause them came just 13 hours later. However, his aggressive stance against China remains, with tariffs on Chinese goods now at a staggering 125%.
As the European Union also pushed back with countermeasures against Trump’s tariffs on steel and aluminum, Ackman shared stories from small businesses feeling the effects. One such business owner, a cold brew coffee producer, expressed concern over a 50% increase in the cost of glass bottles sourced from China and a significant hike in other raw materials. The founder feared their customers would not tolerate price increases, potentially leading to job cuts and reduced spending.
In his social media posts, Ackman shared his belief that Trump’s approach was “brilliantly executed,” with the 90-day pause serving as a strategic opportunity for future trade negotiations. Ackman commended Trump for identifying key trading partners and pressing China to take responsibility for the ongoing trade friction.
Ackman’s closing remarks echoed a call for a more diplomatic resolution, advising China to take a proactive approach to negotiations: “Pick up the phone and call the President,” he wrote. “The longer China holds out, the worse the outcome for them.”
