Prominent hedge fund figures, including Pershing Square Founder and long-time Donald Trump supporter Bill Ackman, have come out forcefully against the President’s sweeping new tariffs, warning that the looming trade regime risks inflicting significant damage on financial markets and the US economy, according to a report by Bloomberg.
Ackman described the policy as a “mistake” in a post on X over the weekend, adding to growing criticism within the hedge fund community. His comments were echoed by legendary macro investor Stanley Druckenmiller, who said he does not support tariffs above 10%, citing the inflationary risks and economic strain they could create.
The backlash from major hedge fund managers comes as Trump doubles down on a global tariff overhaul set to take effect 9 April — a move that has already triggered a brutal selloff in global equities and heightened investor anxiety.
“I strongly believe launching tariffs on 9 April against the entire world — massively in excess of what we are being charged — is a mistake,” Ackman wrote, calling for a 90-day pause to allow for a more strategic negotiation of global trade terms.
Ray Dalio meanwhile, founder of Bridgewater Associates, previously warned that the proposed tariffs would be “significantly stagflationary,” adding to the chorus of macro-driven concerns.
While Ackman’s criticism marked a notable break from his recent public backing of Trump, he emphasised that Pershing Square’s portfolio is well-positioned to withstand the current volatility. The firm holds no margin leverage, he said, and maintains just one position — Nike 3-year call options — directly exposed to tariff risk, accounting for only 1.5% of its portfolio.
“We don’t use margin. Never have. Never will,” Ackman wrote, adding that Pershing Square will not be forced sellers in a declining market. “We will be buyers of great businesses at highly discounted prices, which will benefit us and our investors over the long term.”
Ackman also warned that escalating tariffs during a market downturn weakens the US’s leverage in trade negotiations. “Whoever is recommending that idea to our president should be fired promptly,” he said.
The sharp divergence between hedge fund leaders and Trump’s economic strategy underscores deepening concern within the alternatives industry over the direction of US policy — and its potential to derail both investor confidence and capital markets.
