The Millionaire Heat Electulative Fund Manager Bill Ackman proposed what he calls a more practical and strategic alternative to the Trump administration’s pricing policy, warning that the current path could lead to the global economy in a “self-induced economic nuclear winter”.
In a long article on social networks entitled “How is it for a simple approach?”, The CEO of Pershing Square called for an immediate 90-day break in reciprocal tariff climbing, arguing that such a window would allow private negotiations with business partners. His intervention comes in the midst of the growing concerns of economists and business leaders on the long -term implications of the protectionist agenda of President Donald Trump.
Ackman criticized both the intention and execution of the pricing strategy, claiming that the administration’s formula to measure foreign prices has swelled their size “four times greater than they are”. This calculation error, he said, now directs the United States to what could be a major economic scheme.
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“The global economy is removed because of bad mathematics,” Ackman wrote. “The president’s advisers must recognize their error before April 9 and make a correction of the course before the president makes a big mistake according to bad mathematics.”
Price and realignment break
At the heart of ACKMAN’s proposal is the idea of a modest and 10% rate for countries that are dealing with the United States – general costs intended to compensate for long -standing investments in America in global safety and health, as well as previous trade deficits. But beyond that, he asked for a targeted approach on a case-by-case basis.
“We maintain pressure on China to resolve materially unfair negotiation practices, IP flight, the handling of currencies and other practices that have disadvantaged our nation,” he said, highlighting the need for specificity and diplomacy rather than general punishment.
The plan, he noted, would begin with a 90-day stop in the tariff climbing of Tit-For-Tat, rather focusing on bilateral talks with countries whose policies have touched the competitiveness of the United States the most, in particular in manufacturing.
Rethink trade deficits
Ackman has also challenged some of the fundamental ideas that have shaped Trump’s approach to trade, in particular the obsession with reducing the American trade deficit on a country by country.
“It does not make sense to have a balanced trade with countries smaller than us and which have fewer resources to spend on American products,” he said. “We will buy forever from Madagascar than they will buy from us.”
He warned against the use of export importation parity as a reference, calling it a mistaken target for a country like the United States, which has the greatest economy and the highest standard of living in the world. Instead, Ackman urged the administration to recognize the value of less visible American exports – such as software, intellectual property and financial services – which do not appear in traditional commercial data but contribute significantly to the economy.
“If these were included, the balance of commercial statistics would be much more balanced,” he said.
He added that American multinationals that exploit subsidiaries abroad also generate yields in the form of profits, dividends and strategic influence, even if these income is often absent from standard commercial metrics.
Manufacturing realities
ACKMAN, whose investment company manages billions of assets, also rejected the idea of bringing back manufacturing at low wages to the United States, calling it economically unrealistic and strategically imperfect.
“Trying to bring back jobs in low-wage manufacturing is not good for America,” he said, noting that countries like Bangladesh and Vietnam are naturally better suited to industries such as the production of textiles and shoes.
Instead, he encouraged American decision -makers to adopt high -value service services and technological exports such as the new face of global competitiveness.
A plea for caution
In its fence remarks, Ackman recognized the defects of the existing global trade system but warned against demolishing it without a viable plan to replace it.
“The current trading system, although far from perfect or fair in the United States, has served us very well,” he wrote. “We must be cautious in the way we change it so as not to upset the world order so that this disadvantages our country in the long term.”
The position shared a few days before a critical deadline of April 9 for the next wave of pricing decisions marks one of the strongest warnings to date of a heavyweight of Wall Street on the potential cost of Trump’s approach.
However, it is not clear if the Trump administration will take the advice. Trump has doubled the pricing policy, calling on the Americans to support it because he is supposed to improve the economy.
“The United States has a chance to do something that should have been done decades ago. Don’t be weak! Don’t be stupid! Do not be a panican (a new party based on weak and stupid people!). Be strong, courageous and patient, and the greatness will be the result! ” The president said on Monday.
However, with the global markets showing signs of tension and recession alarms that sound in key savings, pressure rises for recalibration. ACKMAN, like several other investors, calls for replacing the hard posture by intelligent recalibration, before the United States was isolated in a trade war on its own manufacture.
