In the wake of Trump’s controversial tariff policy that has seen the global stock market experience a historic downturn, erasing approximately $6.6 trillion in market capitalization in two days, co-founder of the Virgin Group, Richard Branson, has urged the U.S. president to reconsider the sweeping tariffs.
The billionaire business magnate has warned that such tariffs imposed by the U.S. government are steering the global economy toward a dangerous path. He argues that these tariffs will harm people worldwide, particularly Americans, by undermining economic prosperity.
On his LinkedIn page, he wrote,
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“Strong leadership means taking risks and trying things but when it doesn’t work, realizing your mistake and correcting it. Quickly. One of the most important lessons I’ve learned from 60 years of business is to accept when I’m wrong and change course. The US government’s sweeping tariffs are taking the world’s economy in a dangerous direction. They will make people everywhere worse off, especially in America.
“It’s not just about the economy. Countries that trade fairly and healthily prosper and flourish. They reduce poverty, improve health and education, and decrease the likelihood of war. Courage and self-awareness are cornerstones of true leadership. That includes quickly acknowledging errors and making corrections. With a swift reversal back to sensible economic policy, America and the rest of the world can still avoid the catastrophic fallout these tariffs will inflict.”
Branson has therefore called for a swift reversal to sensible economic policies to avert the catastrophic consequences he believes the tariffs will cause.
His warning comes after President Donald Trump on Wednesday last week, announced that the U.S would impose a flat 10% tariff on every country in the world, with higher rates for many of America’s largest trading partners including China, U.K., India, Japan, South Korea and the European Union.
Trump’s announcement included a 32% tariff rate on Taiwan, a 26% rate on India, and an increase on China that brings its total rate to 54% on imported goods. The news sent shock waves across stock markets across the globe. The S&P 500 index was down 5% and the tech-focused Nasdaq composite was down 6%. Stock markets in Europe, Russia, Japan, and China’s capital Hong Kong, also suffered losses.
Notably, the tariffs roll out, erased a collective $270 billion from the fortunes of the world’s 3,000 billionaires. Mark Zuckerberg, Jeff Bezos, and Elon Musk each lost more than $23 billion. According to Bloomberg’s Billionaires Index, collectively, the two-day drop wiped out $30.9 billion in net worth for Elon Musk, $23.49 billion for Jeff Bezos, and $27.34 billion for Mark Zuckerberg the world’s three richest people, in that order.
Meanwhile, according to a CNBC report, not all billionaires lost money immediately after the tariffs were announced. Bloomberg’s index revealed that Mexican businessman Carlos Slim got $2.9 billion richer on Thursday before eventually losing $5.48 billion on Friday.
Slim noted that the Trump administration’s tariffs will be temporary, and primarily used as a negotiation tactic, he said in a Bloomberg interview. “The U.S. doesn’t have any other alternative other than changing how it does things,” Slim said.
Amidst the tariffs chaos, Trump said that his tariffs are the only way to solve “financial Deficits with China, the European Union, and many others.”
“Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing,” Trump wrote in a post on his Truth Social platform, adding that the tariffs are bringing “Tens of Billions of Dollars” into the U.S.
Part of his post reads,
“We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A. They are already in effect and a beautiful thing to behold. The Surplus with these Countries has grown during the “Presidency” of Sleepy Joe Biden. We are going to reverse it and reverse it QUICKLY. Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
However, last week Thursday, Trump disclosed that he’d be open to negotiating tariff rates with other countries, despite White House aides insisting the opposite.