'Destroying confidence in our country': Trump-backing billionaires in full tariff revolt
Donald Trump was waking up Monday to news that some of his most prominent backers on Wall Street are joining forces to attack him over his tariff policies, with one saying he has put the country on a path to a "self-induced, economic nuclear winter.”
In interviews with the Wall Street Journal and CNBC, and on social media, hedge fund manager Bill Ackman, a very vocal and prominent hedge fund manager who became one of the president's biggest boosters in the run-up to the 2024 election, railed at the man he once championed.
“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,” he complained.
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With the stock market expected to take another hit on Monday due to the president's sweeping tariffs that have roiled the world's economies, Howard Marks, co-chairman of investment firm Oaktree Capital, accused, "We’ve gone from free trade and world trade and globalization to this system, which implies significant restrictions on trade in every direction and a step toward isolation for the United States.”
“It will be a test of the administration’s judgment versus ideology how they resolve this over the weekend or coming days,” agreed hedge-fund manager Dan Loeb.
Those comments come right after notable Wall Street exec Jamie Dimon addressed the issue to J.P. Morgan shareholders in a letter and wrote, "Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects. We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," he added.
According to the Wall Street Journal's Gregory Zuckerman and AnnaMaria Andriotis, some Wall Street executives have been flooding White House chief of staff Susie Wiles with pleas to rein in her boss before he does permanent damage, with the report adding, "Those bank CEOs could face pressure to speak out publicly starting this week when they begin reporting quarterly results and investors will see if they issue critiques of their own."
Added Goldman Sachs’s Tony Pasquariello, “There was a harshness that surprised even the most hawkish people I know.”