Urgent Call for Tariff Reduction

Billionaire investor Bill Ackman emphasized the necessity for the US and China to swiftly engage in discussions to lower tariffs to a more manageable range of 10% to 20%. He highlighted that the primary barrier to this adjustment is the leaders' apprehension of being perceived as weak. "A mutual reduction in tariffs is not a sign of weakness but a testament to common sense," Ackman stated.

The Strategic Advantage of Time

Ackman pointed out that in the current negotiations, "time favors the US while it works against China." He urged both nations to initiate talks promptly to avoid further complications.

Warning for China's Global Role

He cautioned that China must acknowledge the economic impracticality of maintaining high tariffs, as it risks losing its pivotal position in global supply chains. Ackman warned that prolonged high tariffs could irreversibly damage China's role, with small businesses being the most vulnerable. He suggested that the US could provide loans to assist companies in relocating production if necessary, though he remains hopeful for a negotiated solution.