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Investing.com-- China is now isolated in global markets after U.S. President Donald Trump announced exemptions for all other countries targeted by his so-called reciprocal tariffs, billionaire investor Bill Ackman said on Thursday.
Ackman said the outcome of Trump’s tariffs and exemption was “highly favorable,” especially with several U.S. trading partners now engaging in trade talks with the White House.
“The outcome of the @realDonaldTrump strategy was highly favorable… China is now isolated and our other trading partners are lining up to make deals,” Ackman said in a post on X.
Ackman also noted that China was now open to negotiations, and that time would not favor the country, given that U.S. corporations were now trying to distance themselves from supply chain exposure to the country.
Ackman’s comments come after Trump on Thursday announced a 90-day exemption for countries targeted by his steep reciprocal tariffs. But China received no such exemption, with Trump hiking tariffs on the country to 125%, criticizing Beijing’s retaliation.
China had struck back against Trump’s tariffs with an 84% levy on American goods. The tariff, along with Trump’s increased duties, took effect from Thursday.
Ackman had earlier this week called Trump’s tariffs “economic nuclear war,” which severely risked alienating U.S. allies. He had also called on Trump to announce a 90-day time-out on the tariffs to allow for negotiation, which the President did eventually deliver.
Ackman noted that the President had chosen the “economically sensible advice” of Treasury Secretary Scott Bessent, as opposed to other, more radical voices in his cabinet, which bodes well for the next four years of administration.
Still, Trump's recent flip-flopping on tariffs eroded investor confidence, sparking wild swings in financial markets this week. Analysts also warned of the impact of Trump's increased China tariffs, given that the country still exports several critical goods to the U.S. that are not easily replaceable.