Stanley Druckenmiller, the billionaire hedge fund supervisor who was as soon as Treasury Secretary Scott Bessent’s boss after they each labored as cash managers for George Soros, mentioned he’s against President Trump’s tariffs exceeding 10%.
Druckenmiller, the GOP-aligned investor who doesn’t typically weigh in on social media, took to X on Sunday to specific his opposition to Trump’s “reciprocal” tariffs which have triggered an enormous selloff within the equities markets.
“I do not support tariffs exceeding 10% which I made abundantly clear in the interview you cite,” Druckenmiller wrote on his X account in response to an economist who uploaded footage of a previous interview that the billionaire carried out with CNBC.
Druckenmiller granted CNBC an interview on Inauguration Day throughout which he appeared resigned to tariffs although he urged moderation in making use of them — calling them a “lesser of two evils” in comparison with elevating revenue tax.
“I don’t want to exit this interview as ‘tariff man’,” he informed CNBC on Jan. 20.
“In a perfect world, I would not be for a 10% tariff, but we’re not in a perfect world.”
Druckenmiller mentioned that reasonable tariffs have been acceptable since “we have a fiscal problem” and “we need revenues.”
“Tariffs will generate revenues,” he mentioned, including: “To me, tariffs are simply a consumption tax that foreigners pay for — at least part of it.”
Druckenmiller cautioned towards “retaliation” from overseas nations whereas downplaying “the fear of Donald Trump” — although he certified that remark by including “as long as we stay in the 10% range.”
Druckenmiller is extensively thought to be one of the profitable cash managers of his technology.
In 1981, he based his personal agency, Duquesne Capital Administration.
All through his profession, Druckenmiller delivered hefty returns, with Duquesne Capital reportedly by no means having a down yr earlier than he closed it to outdoors traders in 2010, citing the strain of sustaining his excessive efficiency.
Druckenmiller is maybe finest recognized for his work with Soros on the Quantum Fund, the place he served as lead portfolio supervisor from 1988 to 2000.
Collectively, they famously “broke the Bank of England” in 1992 by shorting the British pound.
This daring commerce reportedly earned the Quantum Fund over $1 billion in a single day and cemented Druckenmiller’s popularity as an astute macro investor.
Bessent, who additionally went on to discovered his personal hedge fund, was a part of the Soros group throughout the 1992 Black Wednesday occasion.
Soros is usually criticized by conservatives for utilizing his wealth to help progressive causes, liberal political candidates and worldwide organizations that promote left-wing causes which many on the appropriate view as opposing nationwide sovereignty and conventional values.
Bessent delivered a agency message on Sunday as world markets reacted negatively to the newest spherical of American tariffs.
Talking on NBC’s Meet the Press with Kristen Welker, Bessent pushed again towards fears that the brand new commerce measures may tip the US economic system right into a downturn.
“I see no reason that we have to price in a recession,” Bessent mentioned throughout the interview.
His remarks, echoed by comparable statements from Commerce Secretary Howard Lutnick and White Home commerce advisor Peter Navarro, made it clear the Trump administration has no plans to reverse course on the broad set of tariffs introduced the earlier week.
In accordance with Bessent, the transfer has already prompted greater than 50 nations to succeed in out to the administration, however any potential negotiations won’t occur in a single day.
From Washington’s perspective, many countries have constantly acted unfairly in commerce relationships, Bessent argued, suggesting these long-standing points gained’t be resolved rapidly.
“Other countries have been bad actors for a long time,” he mentioned, emphasizing the complexity of the present state of affairs.
“We’re going to have to see what the countries offer and if it’s believable. I think we are going to have to see the path forward.”
Druckenmiller is the newest Wall Road titan to publicly categorical reservations about tariffs.
Invoice Ackman, the hedge fund billionaire who based Pershing Sq. Capital Administration, urged Trump to pause the imposition of tariffs for 90 days with a view to enable nations to renegotiate commerce offers with the US.
Ackman, who has been a vocal supporter of Trump, warned the president that he was main the nation towards a “self-induced economic nuclear winter” if he doesn’t present restraint.
High White Home adviser Kevin Hassett addressed Ackman’s feedback throughout an look on Fox Information Monday morning.
“I would urge everyone, especially Bill, to ease off the rhetoric a little bit,” mentioned Hassett, who serves because the director of the White Home Financial Council.
Jamie Dimon, CEO of JPMorgan Chase, expressed concern over the financial impression of latest tariffs, stating: “The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession.”
Regardless of current market declines, he famous that “prices remain relatively high,” and emphasised that “these significant and somewhat unprecedented forces cause us to remain very cautious.”
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” the senior banker wrote.
Howard Marks, the co-chairman of Oaktree Capital, commented in a Bloomberg Tv interview that “we’ve gone from free trade and world trade and globalization to this system, which implies significant restrictions on trade in every direction and a step toward isolation for the United States.”
The Publish has sought remark from the White Home and Bessent.
