Bill Ackman the founder and Chef Executive Officer of hedge fund Pershing Square, believes China cannot afford a drawn-out tariff war with the US and is facing mounting pressure to strike a deal, according to a report by Bloomberg.
Posting on X, Ackman said China is “highly incentivised” to reach an agreement swiftly, arguing that the longer punitive tariffs remain in place, the more companies will accelerate efforts to shift supply chains to alternative markets such as India, Vietnam, Mexico, and the US.
“If China stubbornly holds out due to pride or other emotional reasons, the economic consequences will be much more severe and permanent,” Ackman said. “Time is the friend of the US and the enemy of China in this negotiation.”
Ackman’s view challenges the prevailing narrative that Beijing can endure US economic pressure. Despite President Xi Jinping’s hardline stance – including rebuffing efforts by Donald Trump to reinitiate dialogue – internal pressures appear to be mounting. Bloomberg reported last week that China is considering suspending some of its retaliatory tariffs, a sign of the strain tariffs are placing on domestic industries.
