As President Donald Trump’s sweeping new tariffs begin to take effect, cracks are emerging not just in global markets but within the wealthy and powerful circles that once offered quiet support.
While administration officials argue that the 10% universal import tariff will have little impact on U.S. consumers, a growing number of corporate leaders, investors, and economic experts are voicing concern — publicly and privately — over what they describe as an unfolding economic crisis.
Markets Crash, CEOs Stay Silent — For Now
The stock market reaction has been brutal. Following Trump’s announcement of blanket tariffs on all U.S. imports — with additional, steeper levies targeting 185 nations — the Dow, S&P 500, and Nasdaq entered steep declines. In just two days, U.S. markets lost over $6 trillion in value, marking the worst rout since the early days of the COVID-19 pandemic.
Despite the damage, America’s top CEOs have largely stayed out of the spotlight. At the recent Yale CEO Caucus, a private survey revealed a potential breaking point: 44% of executives said they’d speak out if the market fell by 20%, a threshold that several indexes have now breached. But few have yet dared to go public.
“They don’t want to be the lightning rod,” said Yale’s Jeffrey Sonnenfeld, who hosted the summit. “Then it becomes personalized to them.”
One unnamed board member quoted by the Financial Times summed it up: “You don’t want to be the barking dog for everyone else because you’re going to be the one who will get shot.”
The Billionaire Breaks Ranks
Bill Ackman, the billionaire hedge fund manager who endorsed Trump in 2024, has emerged as one of the first high-profile business leaders to warn of catastrophic fallout. In a detailed post on X, Ackman praised Trump for raising awareness about trade imbalances but blasted the execution of his policy as reckless.
“By launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country as a trading partner,” Ackman wrote. He warned that business investment would grind to a halt, consumers would stop spending, and layoffs would mount — triggering what he called an “economic nuclear winter.”
Ackman’s critique was particularly pointed in its appeal to Trump’s own supporters. “This is not what we voted for,” he wrote. “Low-income consumers who are already under a huge amount of economic stress are going to be severely hurt.”
Economic Advisers Dig In, But Doubts Grow
Top economic officials are maintaining a united front. Kevin Hassett, Director of the National Economic Council, dismissed fears of consumer pain in an interview with ABC’s George Stephanopoulos, citing “inelastic supply” and claiming that countries are already “coming to the table” to negotiate.
More than 50 countries, Hassett said, have contacted the U.S. to start talks. But critics argue this isn’t a sign of success — it’s evidence of panic. Former Treasury Secretary Larry Summers called the tariffs “the biggest self-inflicted wound we've put on our economy in history,” estimating a combined $30 trillion in losses to companies and consumers.
Meanwhile, Trump's suggestion that a market decline might help force the Federal Reserve to lower interest rates has fueled speculation that the administration is using financial turmoil as a bargaining chip. Hassett denied that Trump was intentionally tanking the market, insisting the president’s only aim was “to deliver for American workers.”
Allies Frustrated, Rivals Retaliate
The backlash abroad is growing. Japan’s Prime Minister has announced an emergency trip to the U.S. in hopes of preventing a 24% tariff on Japanese imports. Canada and China have already unveiled retaliatory measures, and the European Union is preparing a package of counter-tariffs that could hit as early as next week.
Even within the Trump administration, signs of strain are emerging. Tesla CEO and White House adviser Elon Musk publicly backed a “zero-tariff” trade agreement with Europe — a clear rebuke of current policy. On social media, Musk ridiculed fellow trade adviser Peter Navarro and reportedly faces pressure from other business leaders to speak more forcefully against the administration’s approach.
Behind closed doors, more elite voices are reportedly preparing to confront the president directly. According to tech journalist Kara Swisher, “a passel of high-profile tech and finance leaders” is heading to Mar-a-Lago to “read Trump the riot act” in a bid to reverse course.
Whether Trump listens remains to be seen. On Sunday evening, the president reiterated his belief in the tariffs, calling them “a beautiful thing to behold.” As stock futures plunged again overnight, his message was clear: the pain, he believes, is worth it.
For markets, consumers, and the business elite, the question is whether that pain will prove politically — or economically — sustainable.
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