Trump Pauses Tariff Plans Amidst Concerns from Wealthy Backers and Market Reaction

President Donald Trump’s announcement to pause his tariff plans has ignited a sense of relief among investors and his affluent supporters alike. This change of heart comes as over 75 countries reached out to the administration for assistance in negotiating trade agreements, prompting a notable uptick in stock market performance on Wednesday. Prior to this announcement, the escalating trade war had resulted in growing unease among Trump’s financial backers who began voicing their concerns about the impacts of the tariffs.

Among these high-profile supporters is Elon Musk, the CEO of Tesla, who has consistently opposed tariffs throughout Trump’s presidency. Reports indicate that Musk proactively reached out to Trump to advocate for a reduction in tariff plans, even taking to social media to emphasize the importance of international trade cooperation. His criticism also extended to Peter Navarro, the White House trade advisor responsible for developing the tariff strategy, culminating in a public dispute.

Bill Ackman, a billionaire fund manager, was equally vocal about his discomfort with the tariff policies, warning that they could precipitate a “major global economic disruption.” While he acknowledges the necessity of tariffs to combat unfair trading practices, Ackman argued for a 90-day pause to negotiate more equitable deals, suggesting that the opposite would only lead to harmful repercussions for the U.S. economy.

JP Morgan Chase CEO Jamie Dimon, despite initially endorsing Trump’s approach, has shifted his stance, cautioning that a recession is a likely outcome from the ongoing trade disputes. He has called for swift negotiations with other nations to mitigate potential damage, indicating that prolonged tension could harm economic stability.

Additionally, Ken Fisher, the executive chairman of Fisher Investments, delivered a scathing evaluation of Trump’s tariffs, labeling them as misguided and excessive. He expressed his belief that while the fear surrounding these tariffs may be disproportionate, the situation would inevitably resolve itself, as the underlying issues are less severe than suggested. Fisher’s candid remarks underscore the deep-seated disagreements among Trump’s financial allies regarding the tariff policies and their broader implications for the economy.