Ackman Warns of Policy Error as Trump’s Tariffs Roil Markets, Targets Lutnick

Global financial markets extended their sharp decline on Monday, marking the third consecutive day of heavy losses following Donald Trump’s announcement of sweeping new tariffs last Wednesday. Branded by Trump as “Liberation Day,” the move is a bid to eliminate America’s trade deficits but has triggered widespread investor anxiety.

The political fallout is being closely watched, with Republican lawmakers largely rallying behind Trump’s economic nationalism. Despite mounting concerns in the U.S. and abroad, party figures have cast their support as a matter of trust in the former president’s long-standing economic vision.

According to Bloomberg, approximately $9.5tn has been wiped off global equity valuations since the announcement.

JP Morgan Chase chief executive Jamie Dimon, in his annual letter to shareholders, struck a cautious tone.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon wrote. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

Equity markets across Europe mirrored Wall Street’s unease. As of 7 a.m. ET, the pan-European Stoxx 600, London’s FTSE 100, Germany’s DAX, and the main French and Italian indices were each down by more than 3 per cent.

Returning to the White House on Sunday, Trump showed no signs of reconsidering the tariff package. “Sometimes you have to take medicine to fix something,” he said.

Billionaire hedge fund manager Bill Ackman, whose positions stand to suffer significant losses, took to X to call on Trump to delay the tariff rollout to allow time for international negotiations.

“By placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital,” Ackman said.

In a particularly pointed attack, Ackman singled out Commerce Secretary Howard Lutnick, accusing him of being indifferent to the stock market collapse because his firm stood to benefit from a bond market rally. “He profits when our economy implodes,” Ackman said.

However, he later tempered his remarks in a follow-up post: 

“It was unfair of me to lash out at Lutnick,” said Ackman.

“I don’t think he is pursuing his self interest. I am sure he is doing the best he can for the country while representing the President as Commerce Secretary. It is not an easy job and we don’t know how the sausage was made. I am just frustrated watching what I believe to be a major policy error occur after our country and the president have been making huge economic progress that is now at risk due to the tariffs.”