Bill Ackman, Billionaire Trump Supporter, Claims US Commerce Secretary Howard Lutnick Profits from Long Bonds When Economy Collapses

This article does not constitute investment advice. The author holds no positions in the stocks referenced herein.

Market Turmoil Amidst Trump’s Tariff Strategy

As U. S.futures collapse and Asia’s spot markets react, tensions mount due to President Trump’s hardline “impose tariffs first, ask questions later”approach. Recent claims made by billionaire investor and CEO of Pershing Square, Bill Ackman, suggest that U. S.Commerce Secretary Howard Lutnick benefits from economic downturns, raising eyebrows and furthering market unease.

Overview of Recent Tariffs

To provide context, President Trump has enacted a baseline tariff of 10% on all imports into the United States. Notably, imports from the European Union are now subjected to a 20% tariff, while those from China face an astonishing total of 54% due to a combination of duties, including a 20% fentanyl-related charge and a 34% reciprocal levy. Additionally, ongoing tariffs under Section 232 apply to steel, aluminum, vehicles, and auto components, with potential tariffs on raw semiconductors imminent.

China’s Retaliatory Actions

In a dramatic escalation, China has imposed a reciprocal tariff of 34% on all U. S.imports, which is expected to trigger further retaliatory measures from the Trump administration, complicating the trade landscape and illustrating a concerning cycle of tit-for-tat tariff increases.

BREAKING: Trump is doubling down on the tariffs and says that he will not be making any deals unless it fixes the trade deficitspic.twitter.com/2mur5RQD0Q

— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) April 7, 2025

Market Reactions and Economic Predictions

As anxieties surrounding market conditions intensify, Trump’s unwavering ambition to eradicate trade deficits casts a shadow over potential economic recovery. Current indicators suggest an alarming likelihood of a recession, with probability estimates soaring to 62% based on contracts trading on Polymarket, and JPMorgan indicating a contraction is on the horizon.

An Overview of the Dow’s Performance

Reflecting the fears gripping investors, Dow futures have plummeted over 900 points—approximately 2.5%.The previous week saw the Dow experience back-to-back losses exceeding 1, 500 points, while the S&P 500 and tech-heavy Nasdaq-100 futures are also seeing significant declines of 2.9% and around 4%, respectively.

The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust.

President @realDonaldTrump has elevated the tariff issue to the most important geopolitical…

— Bill Ackman (@BillAckman) April 6, 2025

Ackman’s Contradictions

Bill Ackman, typically a supporter of Trump, recently expressed criticism regarding the administration’s tariffs. He noted an apparent conflict of interest concerning Secretary Lutnick, whose firm is heavily invested in bonds. Ackman suggests that Lutnick may profit during economic downturns, thereby questioning the alignment of the Commerce Secretary’s interests with those of the American economy.

I just figured out why @howardlutnick is indifferent to the stock market and the economy crashing. He and Cantor are long bonds. He profits when our economy implodes.

It’s a bad idea to pick a Secretary of Commerce whose firm is levered long fixed income. It’s an irreconcilable…

— Bill Ackman (@BillAckman) April 7, 2025

As the market continues to decline, Ackman’s previously reassuring tone towards Trump’s administration has shifted. He now firmly positions himself as an ally to American interests in stark contrast to Lutnick, who he believes operates against the nation’s economic well-being.

No. I am long America and he is short. I am aligned with our country and our economy and he is short.

— Bill Ackman (@BillAckman) April 7, 2025

As discussions around tariffs and their implications evolve, the discourse within Trump’s circle is expected to intensify. Ongoing economic pressures and market volatility may lead to more frequent and robust disagreements among key figures in his administration.

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