Trump Likely to Delay Tariffs to Prevent Economic Downturn, Says Ackman
- Bill Ackman predicts Trump may delay April 7 tariffs to allow strategic deal-making window.
- April 4 sell-off erased $5 trillion in S&P 500 value, surpassing 2020 pandemic panic losses.
- Ackman warns of potential recession if tariffs are implemented without sufficient preparation.
As the United States navigates economic uncertainty, billionaire investor Bill Ackman suggested that President Donald Trump might postpone the tariffs scheduled to begin on April 7. Ackman, recognized for his market insights, shared his views in a social media post dated April 5.
I would, therefore, not be surprised to wake up Monday with an announcement from the President that he was postponing the implementation of the tariffs to give him time to make deals, Ackman said. The investor believes Trump could strategically pause to negotiate effectively and ease immediate market tension.
Trump announced these controversial tariffs via an executive order signed on April 2. His order introduced a universal 10% tariff rate on all imported goods starting April 5. Additionally, the tariffs are structured reciprocally at about half the rates currently charged by other countries on American products.
Cryptos Stability Amid Stock Market Tumult
Markets worldwide have reacted dramatically to these tariff announcements. On April 4, investors witnessed a historic sell-off, leading S&P 500 companies to lose $5 trillion in value. Remarkably, the two-day stock market decline exceeded the $3.3 trillion drop experienced during the initial panic over the pandemic in March 2020.
The technology-heavy Nasdaq index officially slipped into bear market territory. This means it is down more than 20% from its recent high point. Simultaneously, commodity markets, including oil, experienced severe drops, reflecting widespread investor unease regarding economic stability.
Despite the chaos, cryptocurrency markets surprisingly managed to remain relatively steady. Cryptos stability during such dramatic financial fluctuations caught the attention of both advocates and critics. Bill Ackman himself previously stated after the FTX collapse in November 2022 that crypto is here to stay, acknowledging digital currencys resilience.
BitMEX co-founder Arthur Hayes remarked in a post dated April 3, saying: Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC. Hayes confidently proclaimed his enthusiasm, adding: Some of yall are running scurred, but I LOVE TARIFFS.
Ackmans Cautious Advice on Tariff Implementation
Despite recognizing potential benefits, Ackman warns about the risks attached to the sudden application of these tariffs. The investor explained that delaying the tariffs would not only allow the U.S. to negotiate more thoughtfully but also give businesses crucial preparation time.
The practical reality is that there is insufficient time for him to make deals before the tariffs are scheduled to take effect, Ackman stated. He added that Trumps announcement significantly caught global attention, highlighting the tariffs as essential measures to counteract decades of unfair tariff regime detrimental to American workers and the overall economy.
Expressing a balanced viewpoint, Ackman further cautioned about possible economic repercussions if Trump proceeds without delay. The risk of not doing so is that the massive increase in uncertainty drives the economy into a recession, potentially a severe one, he warned.
According to Ackman, the approaching April 7 deadline could become one of the more interesting days in U.S. economic history, emphasizing its crucial impact on future economic trends.
Related Readings | Bitcoin Outshines Gold as a Store of Value Amid Market Crisis
Read more: https://www.tronweekly.com/trump-likely-to-delay-tariffs-says-ackman/
Text source: TronWeekly
