Billionaire investor Bill Ackman (´pictured) said on Saturday that both the US and China should move quickly to reduce tariffs to more reasonable levels, ideally between 10% and 20%. According to Ackman, the only obstacle to lowering tariffs is the fear among leaders of appearing weak. "A pause, however, would not be a sign of weakness because it requires both countries to take down their tariffs. It is just common sense," he said.
He argued that "time is the friend of the US and the enemy of China's" in the ongoing negotiation, urging for a pause and the start of talks soon.
Ackman stressed that China must recognize that unless sourcing remains economically viable, companies, both US and non-US, will be forced to leave. Prolonged high tariffs, he warned, would permanently undermine China's role in global supply chains. While small firms are most at risk, Ackman said the US could offer loans to aid companies in shifting production if necessary, though he hopes negotiations will prevent this outcome.
