Major investor warns world leaders not to wait too long on tariffs
This week, Donald Trump announced sweeping tariffs across the board to boost American manufacturing and jobs.
While he is taking considerable heat, he is also being slapped on the back by quite a few big names in the investment world.
Trump’s Tariffs
We all knew it was coming, but everyone acted surprised when Trump announced reciprocal tariffs on every country that has tariffs against the United States, big or small.
Trump stated that the United States has been “looted, pillaged, raped and plundered” by other countries since WWII and it was going to stop now.
He added, “Taxpayers have been ripped off for more than 50 years. But it is not going to happen anymore.”
As I have stated in other reports, this is going to sting, especially for people who were set to retire and did not read the tea leaves to get their money out of the market. For those that did, there is going to be a huge opportunity on the other side of this.
Trump Ready to Negotiate
As I stated from the outset of all this, Trump was doing this to negotiate to get our overall tariffs reduced to help create more jobs and more manufacturing in the United States.
However, as it is with everything, there is some pain before the gain.
Having said that, reports are already surfacing that Trump’s phone has been ringing, as countries want to make a deal to reduce the tariffs or have them outright removed.
In fact, a report surfaced earlier today that Vietnam was already talking to Trump about removing the tariffs on both sides, which would be a huge deal when you consider the goods that come here from Vietnam.
Don’t Wait
Billionaire investor Bill Ackman is warning countries that they should not wait too long to reach out to Trump because they could miss the boat.
He posted on X, “My advice to foreign leaders is that if you have not already reached out to President @realDonaldTrump, you need to do so immediately. Trump is, at his core, a dealmaker who sees the world as a series of transactions.”
He later added, “I expect Trump will reward the early dealmakers with fairer deals than those that wait to sit down at the negotiating table. Countries that respond with additional tariffs on our goods will be severely punished. The carrot and the stick writ large, Big Boy style.”
I am still worried about supply chain issues more than I am the stock market, as we saw what happened during COVID when China went into lockdown. I don’t think it will come to that, but you just never know. If this were later in the term, that might be a possibility, but I would think China will be forced to come to the table sooner rather than later because with the amount of goods that come into his country from China, they need our money.