Billionaire supporters of President Donald Trump—including Elon Musk—spoke out Monday morning and issued warnings about the economy as global stock markets plunged further in response to the escalating trade war.
Elon Musk arrives for the inauguration of U.S. President-elect Donald Trump in the U.S. Capitol Rotunda on January 20 in Washington, DC.
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Key Takeaways
- Elon Musk: Trump’s new right-hand-man hasn’t explicitly spoken out against the tariffs, but the Tesla CEO shared a video early Monday of economist Milton Friedman touting free trade and the benefits of importing goods. He also deleted a post from over the weekend criticizing Trump’s top trade adviser Peter Navarro for praising tariffs. Musk’s brother (and Tesla board member) Kimbal Musk also criticized the tariffs as a “permanent tax” on Americans.
- Jamie Dimon: The JPMorganChase CEO issued his annual letter to shareholders Monday morning, which expressed concerns about Trump’s tariffs, saying that while there are some “legitimate reasons” for imposing them, they “will likely increase inflation and are causing many to consider a greater probability of a recession” and expressing concerns about the continued uncertainties around Trump’s tariffs and how they will “affect America’s long-term economic alliances.”
- Bill Ackman: The hedge fund manager is a longtime Trump supporter but has turned against the president’s tariffs, railing against Trump’s Commerce Secretary Howard Lutnick and how the Trump administration calculated the tariffs and calling for the White House to pause them, writing Sunday that if the tariffs do take effect, “We are heading for a self-induced, economic nuclear winter, and we should start hunkering down.”
- Daniel Loeb: While Loeb said in February he thought Trump’s initial tariffs on Mexico and Canada wouldn’t harm the stock market, the hedge fund manager has spoken out against Trump’s more sweeping policy, most recently sharing a post Monday that noted the stock market chaos is “all in the head of 1 person. Who can change his mind at any time” and writing, “Exactly.”
- Larry Fink: The BlackRock CEO suggested at the Economic Club of New York Monday that “the economy is weakening as we speak” and the market could fall another 20% from where it is now as a result of Trump’s tariffs, CNBC reports. Fink suggested the U.S. is “probably in a recession right now,” but he still expressed some optimism about the economy’s long-term outlook, saying, “In the long run, this is actually more of a buying opportunity than a selling opportunity” and “the vitality of the United States will persist.”
Big Number
More than $10 billion. That’s how much Trump’s top 10 billionaire donors lost in the stock market on Thursday alone, as stocks plunged in the immediate aftermath of Trump’s Wednesday tariff announcement. That’s only a fraction of the $270 billion in total that was wiped off the net worths of the world’s billionaires on Thursday, Forbes calculated, with Meta CEO Mark Zuckerberg, Amazon chief Jeff Bezos, Oracle founder Larry Ellison and Musk among those who were the hardest hit.
What Have Billionaires Previously Said About Trump’s Tariffs?
Other billionaires weighed in after Trump’s tariff announcement last week, but haven’t spoken out as the markets have continued to decline. Ray Dalio, who runs the world’s biggest hedge fund firm, Bridgewater Associates, predicted in a post Friday the immediate consequences of Trump’s tariffs will be “significantly stagflationary in the U.S. and significantly deflationary/recessionary in sanctioned countries,” with “many big surprises and changes ahead” based on how the U.S. and other countries negotiate. Longtime hedge fund manager Stanley Druckenmiller expressed some optimism about tariffs in an interview with CNBC, referring to them as the “lesser of two evils” versus an income tax—though an unverified social media account believed to belong to Druckenmiller responded to a clip of his interview Sunday morning, arguing he “do[es] not support tariffs exceeding 10%.”
Tangent
Musk’s brother Kimbal Musk called Trump “the most high tax American President in generations” on Monday. “Through his tariff strategy, Trump has implemented a structural, permanent tax on the American consumer,” the Tesla shareholder said on X.
What Has Trump Said?
Trump has dug his heels in on his tariffs and repeatedly doubled down in support of them, even as they’ve spurred chaos in the markets. “The United States has a chance to do something that should have been done DECADES AGO,” Trump posted on Truth Social on Monday morning regarding tariffs. “Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!” The president staunchly defended his tariffs to reporters in the Oval Office on Monday, saying they are “the only chance our country will have to reset the table” in terms of the U.S.’ trade with other countries, and that while other presidents wouldn’t be willing to impose such controversial tariffs, “I don’t mind going through it, because I see a beautiful picture at the end.”
Will Trump Roll Back His Tariffs?
Trump has suggested he’s open to negotiating with other countries on their tariffs, saying Monday that discussions with other countries would begin “immediately” and telling reporters he’s open to reaching “fair deals” with other countries that put “America first.” The White House denied reports Monday suggesting the administration was considering a 90-day pause, however, decrying the rumor as “fake news,” and Trump said Monday he’s “not looking at” pausing the tariffs unilaterally.
Congress could also undo Trump’s tariffs, and bipartisan legislation has been introduced that would require any tariffs the president wants to impose to be approved by Congress. That legislation remains a longshot to pass as of now and House Speaker Mike Johnson, R-La., has reportedly urged House Republicans to back Trump’s policy—though some GOP lawmakers are already backing the legislation, and more could follow suit if Trump’s tariffs continue to wreak economic havoc. Multiple lawsuits have also challenged Trump’s authority to enact tariffs, with potentially another major legal challenge on the way this week from business groups, though it remains to be seen how those will play out.
Key Background
Trump announced his sweeping tariff policy during a “Liberation Day” event Wednesday, levying tariffs of 10% and up on imports from nearly all foreign countries—even uninhabited ones. The tariffs fulfill a longtime promise by the president to impose sweeping tariffs in order to restore manufacturing to the U.S. and punish other countries for purportedly unfair trade practices, which Trump has pushed despite economists long warning that doing so would raise prices for U.S. consumers and harm the economy.
Billionaires’ criticism of Trump’s tariffs comes after dozens of them backed the president in the November election. More than 50 billionaires expressed support for Trump and billionaires funneled millions into his campaign, even as the now-president made sweeping tariffs a signature plank of his platform.
This article was originally published on forbes.com and all figures are in USD.
