Trump tariffs: Bill Ackman urges 90-day pause to ‘carefully, strategically resolve’ US’ trading position

Trump tariffs: Billionaire hedge fund manager and CEO of Pershing Square Capital Management, Bill Ackman has urged President Donald Trump to pause the tariffs for 90 days so that he can “carefully and strategically resolve our (US’) historically unfair global trading position”. 

Addressing critics who have suggested that his views on tariffs and the market are conflicted, Ackman clarified that neither he nor his firm uses margin leverage, which could lead to liquidity issues in a market crash.

“We have substantial cash on hand ready to be deployed from the recent sale of a large investment. We have only one investment, Nike 3-year call options, that is directly affected by the tariffs, a position that represents 1.5% of our portfolio,” he said. 

Despite the absence of short positions or hedges against a market crash, Ackman assured that they would not sell in a declining market but would instead purchase valuable businesses at discounted prices, benefiting long-term investors. He said that the firm's primary exposure is to the overall health of the country's economy and acknowledged his responsibility to contribute positively to the nation. “We will suffer mark-to-market losses if the market crashes, but we will not be sellers in a declining market,” he said.

“I have a lot of respect for our president and what he has accomplished so far, but I don’t think he is infallible, which is why I am stating loud and clear that I strongly believe launching tariffs on April 9th against the entire world — massively in excess of what we are being charged — is a mistake.  The right answer in my view is a 90-day pause to give the president time to carefully and strategically resolve our historically unfair global trading position,” said Ackman. 

TRUMP TARIFFS

The US imposed 26 per cent tariffs on India, effective from April 9, along with other countries. Trump, while announcing reciprocal tariffs on Wednesday, presented a chart indicating the tariffs for countries like India, China, the UK, and the European Union. The chart showed India charging 52 per cent tariffs, including currency manipulation and trade barriers. 

From 2021-22 to 2023-24, the US was India's largest trading partner, accounting for about 18 per cent of India's total goods exports, 6.22 per cent of imports, and 10.73 per cent of bilateral trade. India had a trade surplus of USD 35.32 billion in goods with the US in 2023-24, which was USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22, USD 22.73 billion in 2020-21, and USD 17.26 billion in 2019-20.

India is among approximately 60 countries facing high taxes from the US, aimed at reducing the trade deficit and boosting manufacturing. Besides India, the duty has been adjusted by 100 basis points for over a dozen other countries, including Bosnia and Herzegovina, Botswana, Cameroon, Falkland Island, Malawi, and Myanmar.