SANTA MONICA, Calif. — Pershing Square CEO Bill Ackman tells Yahoo Finance he remains a supporter of President Trump and would like to see him “succeed.”
But he does think it would be worthwhile for the administration to take a beat on the trade war.
“So we care about the value of a business. The value of a business is the present value of the future cash flows — what’s going on now certainly could be disruptive in the short term. I don’t think it’s likely to have permanent effects. I do think it’s important that we get through the tariff negotiations quickly. I think it’s important that we pause the tariffs, negotiate the pause, or we certainly take them down from 145% to 20% or something like this,” Ackman said at the Milken Institute Global Conference on Monday.
A stronger US economy would put the country in a better negotiating position with China, Ackman added.
On April 9, the Trump administration announced a 90-day pause on all reciprocal tariffs except for those on goods from China. Tariffs on one of the US’s most important trading partners now stand at 145% — a 125% reciprocal tariff and the 20% Trump previously levied.
Read more: What Trump’s tariffs mean for the economy and your wallet
A 10% across-the-board duty is still being applied to all other imports.
“You don’t want to be under the gun, to have the US economy weakening while you’re trying to make a deal with China. Once we take the tariffs down with China, the Chinese are actually highly incentivized to make a trade deal quickly because if they don’t, they’re going to lose” businesses that move their supply chains to other countries, explained Ackman.
On April 11, the White House issued a rule that spared smartphones, computers, semiconductors, and other electronics from reciprocal tariffs, especially the harsher tariffs on Chinese goods. US Customs and Border Protection said the goods would be excluded from Trump’s 10% global tariff and the 125% reciprocal Chinese tariffs. However, the 20% fentanyl tariff on Chinese goods still applies.
The administration said it’s eyeing a tariff on semiconductors, but no plans have been disclosed.
On May 2, a loophole known as the de minimis exemption was closed by the administration. Since 2016, items worth $800 or less could be imported into the US without the recipients paying tariffs or filing paperwork normally reserved for purchases of foreign goods.
Treasury Secretary Scott Bessent aimed to soothe the nerves of investors in a speech at the Milken conference today.
“We have uprooted government waste and harmful regulations. We have planted the seeds of private investment. And we have fertilized the ground with fresh tax legislation. Next, we harvest. And we want you to harvest with us,” Bessent said.
Read more about what business leaders and top political figures are saying at the 2025 Milken Institute Global Conference:
Apollo CEO: I don’t agree with Warren Buffett on tariffs
Treasury Secretary Scott Bessent aims to soothe nerves of international investors
Bessent talks tariffs: China is ‘biggest piece’ of trade puzzle
Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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