Bill Ackman Says 'The Rift Is Healing' As China Opens Door To 90-Day Tariff Pause, Urges Trump To Lower Levies To 10%

Tariffs have skyrocketed. Supply chains are tangled. Small businesses are bracing themselves. But amid the economic friction, a surprising gesture from China may have cracked open the door to compromise. 

On April 17, hedge fund billionaire Bill Ackman reacted to Beijing’s proposal for a 90-day pause on its own tariffs, calling the development a hopeful sign: “The rift is healing,” he posted on X. Ackman’s comment followed China’s call for the U.S. to drop its additional trade levies after Washington made a move to exempt certain electronics from tariffs.

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Ackman Wants A Pause To Prevent Business Fallout

The trade war has escalated in recent months. The Trump administration steadily raised tariffs on Chinese imports, reaching a peak of 145% in early April. In return, China imposed retaliatory tariffs at 125% on U.S. goods, triggering disruptions across sectors on both sides of the Pacific. 

According to Reuters, the Chinese Ministry of Commerce urged the U.S. to fully eliminate the tariffs and resume talks grounded in “mutual respect.”

Ackman, founder of Pershing Square Capital Management, weighed in on April 13 via an X post. 

“If President Trump were to pause the China tariffs for 90 days and reduce them temporarily to 10%, he would achieve the same objective in causing US businesses to relocate their supply chains from China without the disruption and risk to these businesses in the short term,” he wrote. 

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This, Ackman explained, would give U.S. small and medium-sized businesses a breather to adjust their supply chains without immediate financial fallout.

He also clarified that such a move wouldn’t signal weakness. “The result has been nations lining up to negotiate deals with the administration,” he wrote. That means such a move would boost the U.S.’s negotiating power and if the tariffs are reframed as a strategic pause.

These comments come days after Trump exempted key electronics and semiconductor items from new reciprocal tariffs. According to Ackman, that exemption triggered China’s response—and now created an opening for real negotiations.

Meanwhile, the effects of the trade war are becoming increasingly visible. Boeing BA 737 Max jetliner originally purchased by China’s Xiamen Airlines was returned to the U.S. on April 20 due to mounting import costs. 

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In a separate move, Hongkong Post announced that it had suspended all package delivery services to the U.S., citing tariff-related costs.

China’s export data also shows movement. According to the Associated Press, Chinese exports surged 12.4% in March as manufacturers rushed shipments ahead of the harsher U.S. tariff schedules. 

Despite the spike, economists warn that both countries may face slower growth in the months ahead. On April 16, Reuters reported that China’s first-quarter GDP outlook is dimming due to escalating trade tensions and weakening domestic demand.  

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