A dire warning from billionaire hedge fund manager Bill Ackman, a prominent supporter of President Donald Trump, reverberates across the United States on April 7, 2025, as the nation grapples with the fallout of Trump’s sweeping new tariff policies. Ackman, who vocally backed Trump during the 2024 campaign, now pleads with the president to reconsider his trade strategy, cautioning that it risks plunging the country into a “self-induced economic nuclear war.” His stark words come as global markets nosedive, nationwide protests erupt over the weekend, and investors scramble to make sense of the administration’s aggressive economic moves, leaving analysts and citizens alike asking, “What is Trump doing?”
Trump unveils his tariff plan on April 2, dubbing it “Liberation Day,” a bold declaration aimed at rewiring global trade in America’s favor. Speaking from the White House Rose Garden, he imposes a 10% baseline tariff on imports from nearly every country, with higher rates—20% on the European Union, 25% on Canada and Mexico, and a staggering 54% on China—set to take effect on April 9. He invokes the International Emergency Economic Powers Act, citing a $1.2 trillion goods trade deficit in 2024 as a national security threat. “This is medicine for our economy,” Trump insists during a press gaggle on April 6 aboard Air Force One, shrugging off a stock market collapse that sees the Dow Jones plummet over 2,200 points in days. “Countries have ripped us off for too long—now they’ll pay.”
Ackman’s alarm, posted on X on April 6, paints a grim picture. “If we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets, and we will severely damage our reputation,” he writes. The Pershing Square Capital CEO, who once hailed Trump’s economic vision, urges a 90-day “timeout” to renegotiate trade deals, warning that without it, the U.S. faces an “economic nuclear winter.” His plea reflects a growing unease among business leaders, even within Trump’s own coalition. JPMorgan Chase CEO Jamie Dimon echoes the sentiment, telling reporters on April 7 that trade wars could inflict “lasting negative consequences” like persistent inflation and asset volatility, a view backed by the bank’s economists who now peg a U.S. recession risk at 60%.
The financial carnage is immediate and brutal. The S&P 500 drops 1.7% by midday on April 7, capping its worst week since the 2020 COVID crash. Hong Kong’s Hang Seng Index plunges 13.2%—its steepest fall since 1997—while European markets like the FTSE 100 suffer their biggest one-day drop since the pandemic. Oil prices tumble below $60 a barrel, signaling fears of a tariff-crippled global economy. Investors, typically flocking to the dollar in times of panic, instead flee it, a sign some interpret as the greenback’s global dominance eroding. MSNBC’s Stephanie Ruhle, analyzing the chaos, notes, “Investors are baffled—Trump’s signaling one thing, but the markets are screaming another. They’re asking, ‘What’s the endgame?’”
Across the U.S., the tariff shockwave ignites public fury. Over the weekend of April 5-6, millions flood the streets in some 1,200 “Hands Off!” protests, the largest single-day demonstration against Trump since his return to power. In Washington, DC, crowds swell around the Washington Monument, waving Ukrainian flags and Palestinian keffiyehs, decrying not just tariffs but the administration’s broader agenda, including Elon Musk’s influence on government downsizing. In San Francisco, protesters form a human banner on Ocean Beach, while in West Palm Beach, 400 demonstrators rally just miles from Trump’s Mar-a-Lago, where he golfs amid the unrest. “It’s crashing my 401k into a 201k,” Maryland Rep. Jamie Raskin shouts to a DC crowd, slamming Trump as “deranged” for tanking the economy.
The backstory of Trump’s tariff obsession stretches back decades. In his first term, he slaps 25% duties on steel and aluminum in 2018, triggering EU retaliation and a Biden-era truce in 2023. Economic studies from that period show mixed results: tariffs on China largely hit U.S. consumers, while steel duties split costs between buyers and foreign producers. Trump’s 1987 warnings against trade wars—resurfaced by the Chinese Embassy on X—ironically contrast his current stance, where he once cautioned that tariffs spark “higher barriers and less competition.” His 2025 escalation, however, marks a new frontier, leveraging emergency powers in a way no predecessor has, testing the limits of executive authority over trade, a domain constitutionally tied to Congress.
Global retaliation intensifies the stakes. China mirrors Trump’s 54% tariff with its own on U.S. goods on April 7, accusing the U.S. of “economic bullying” and urging Tesla and other firms to push back. Canada hits back with $20.7 billion in duties on American steel and appliances, while the EU finalizes €26 billion in countermeasures targeting U.S. bourbon and steel. Taiwan opts for diplomacy, with President Lai Ching-te pledging no reciprocal tariffs but more investment in the U.S. Italian Premier Giorgia Meloni, set to meet Trump soon, calls the tariffs misguided but vows to negotiate. “The world needs justice, not tyranny,” China’s Foreign Ministry spokesperson Lin Jian declares, framing the U.S. as a rogue actor destabilizing global supply chains.
Breaking news on April 7 reveals cracks in Trump’s coalition. Elon Musk, his cost-cutting czar, breaks his silence at an Italy event, expressing hope for “zero tariffs with Europe someday,” a subtle jab at the policy. Top White House adviser Kevin Hassett defends the tariffs on Fox News, insisting other nations, not Americans, will bear the brunt—a claim economists dispute, predicting a $1,200 annual hit per household. Federal Reserve Chair Jerome Powell warns of inflation risks, hinting at rate cuts to offset a potential recession. Meanwhile, posts on X show Trump aides scrambling to spin the tariffs as a “revolutionary” trade reset, even as grassroots supporters like Texas donor Doug Deason admit to “some disruption.”
The tariff gamble carries a complex legacy. Trump bets it will re-shore jobs and shrink the trade deficit, projecting trillions in U.S. investment. Critics, including Ackman, see a self-inflicted wound—small businesses and low-income consumers, he warns, will suffer most as prices soar. Retirees like Don Herneisen of Kansas City voice unease, telling AP, “Uncertainty isn’t what you want when you’re retired.” Economists forecast a 0.5% GDP drop in year one, with Goldman Sachs warning of a “serious slowdown” if retaliation escalates. For now, Trump holds firm, hosting Israeli PM Benjamin Netanyahu on April 7 to discuss tariffs and Gaza, undeterred by the chaos he’s unleashed.
Sources:
- Video: Billionaire Trump supporter warns of ‘economic nuclear war’ triggered by tariffs
- Video: ‘What is Trump doing?’ Ruhle explains what investors are thinking amid tariff confusion
- Web sources including reuters.com, apnews.com, cnn.com, bbc.com, foxnews.com, axios.com, finance.yahoo.com, independent.co.uk, timesofindia.indiatimes.com, mediaite.com, huffpost.com
- Posts on X reflecting Ackman’s warning, White House messaging, and public sentiment
- General knowledge of Trump’s trade policies and historical tariff impacts
