The White House shot down claims that President Donald Trump may pause his latest wave of tariffs for 90 days as concerns grow about the effect of the president’s new trade policies and how long they could remain in place.
The White House labeled a headline claiming Trump was planning to pause the tariffs “wrong” and “fake news.” Trump supporter Bill Ackman called on the president Monday to take 90 days to reach trade deals with other nations in place of tariffs. Ackman, a hedge fund boss, said Trump’s tariffs could bring about a “self-induced, economic nuclear winter.”
“By placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, 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,” Ackman said. “The president has an opportunity to call a 90-day time out, negotiate and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country.”
JPMorgan Chase CEO made a similar warning in a letter to shareholders.
“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,” he wrote. “As for the short-term, 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. How this plays out on different products will partially depend on their substitutability and price elasticity. Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
Last week, Trump signed executive orders that place a 10% baseline tariff on all imports and higher rates on nations that put tariffs on U.S. products. Trump’s efforts to put America first when it comes to global trade marked the most significant shift in U.S. trade policy since the end of World War II.
Trump has said little about how long the tariffs could remain in place, but has said that the tariffs could generate trillions in federal revenue in the coming years. Trump said the tariffs will generate $6 trillion to $7 trillion in revenue. He promised that money will be used to shift the tax burden away from American families and improve the nation’s finances.
In a speech from the White House’s Rose Garden, Trump said foreign nations for decades have stolen American jobs, factories and industries. He said the tariffs would bring in new jobs, factories and industries and return the U.S. to a manufacturing superpower.
“Our country and its taxpayers have been ripped off for more than 50 years,” Trump said. “But it is not going to happen anymore.”
Trump’s executive order also gives him authority to increase the tariffs “if trading partners retaliate” or “decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters,” according to the White House.
