Billionaire Investor Bill Ackman Alleges That US Commerce Secretary Howard Lutnick "Profits When Our Economy Implodes"

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The ongoing saga of President Trump's tariffs continues to unfold, pushing futures in the US and spot markets in Asia lower on Monday. As the president's advisers reportedly grow increasingly concerned, billionaire investor Bill Ackman has alleged that U.S. Commerce Secretary Howard Lutnick "profits when our economy implodes."

Trump has imposed a baseline tariff of 10 percent on all U.S. imports and a veritable host of reciprocal tariffs on some of the biggest trading partners of the U.S., with imports from the E.U. now subject to a 20 percent levy and those from China entailing an eye-water tariff of 54 percent (20 percent fentanyl-related levy +34 percent reciprocal tariffs).

Also, Steel, aluminum, vehicles, and auto parts remain subject to individual tariffs under Section 232, while tariffs on raw semiconductors are expected in the days and weeks ahead.

However, in a development that caused utter panic on Wall Street on Friday, China has now retaliated by imposing a reciprocal tariff of 34 percent on all imports from the U.S. This measure is expected to invite another retaliation from the Trump administration in a seemingly unending game of one-upmanship.

What's more, despite feeling the heat over the ongoing bloodbath in markets across the globe, Trump appears to be doggedly pursuing his lofty goal of ending all trade deficits for good. This persistence precludes a benign outcome for the markets at large, at least for the foreseeable future.

This figure will accrete to 100 percent over the coming weeks as long as the erroneous and ill-advised "liberation day" tariffs remain intact. These tariffs are bad for everyone except China and bankruptcy attorneys.

Moreover, CDS pricing now assigns a 62 percent probability to a recession materializing in the U.S. in 2025, while JPMorgan (NYSE:JPM) also expects an economic contraction in the U.S.

This brings us to the crux of the matter. At the time of writing, Dow futures are down over 900 points or ~2.5 percent. Last week, the Dow posted losses of more than 1,500 points on two consecutive days. Meanwhile, the S&P 500 futures are currently down 2.9 percent, and the tech-heavy Nasdaq-100 futures are down ~4 percent.

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, 2025Earlier on Sunday night, Bill Ackman, who is generally considered a firm Trump supporter, penned a sympathetic if cautious X post on tariffs.

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, 2025However, as the bloodbath in markets resumed in earnest, Ackman seems to have changed his tone. To wit, the CEO of Pershing Square now believes that Howard Lutnick's interests are not aligned with those of America, given the bond-heavy positions of his firm. For the benefit of those who might not be aware, bonds generally outperform during periods of economic contraction as they benefit from the attendant reduction in interest rates.

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, 2025When a netizen pointed out that Ackman was equally conflicted, given his stake in Nike (NYSE:NKE), which stands to lose out from sky-high tariffs on Vietnam, the billionaire countered that he was "long America and he [Lutnick] is short."

Of course, this is just a small emblem of the turmoil that is now sweeping across Trump's inner circle. Should the crisis continue, one should reasonably expect such outbursts much more frequently and with added vehemence.