Stan Druckenmiller, Scott Bessent’s former boss, says he’s opposed to Trump tariffs exceeding 10%
Stanley Druckenmiller, the billionaire hedge fund manager who was once Treasury Secretary Scott Bessent’s boss when they both worked as money managers for George Soros, said he is opposed to President Trump’s tariffs exceeding 10%.
Druckenmiller, the GOP-aligned investor who doesn’t often weigh in on social media, took to X on Sunday to express his opposition to Trump’s “reciprocal” tariffs that have triggered a massive selloff in 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 past interview that the billionaire conducted with CNBC.
Druckenmiller granted CNBC an interview on Inauguration Day during which he appeared resigned to tariffs though he urged moderation in applying them — calling them a “lesser of two evils” when compared with raising income tax.
“I don’t want to exit this interview as ‘tariff man’,” he told 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 said that moderate tariffs were acceptable since “we have a fiscal problem” and “we need revenues.”
“Tariffs will generate revenues,” he said, adding: “To me, tariffs are simply a consumption tax that foreigners pay for — at least part of it.”
Druckenmiller cautioned against “retaliation” from foreign countries while downplaying “the fear of Donald Trump” — though he qualified that comment by adding “as long as we stay in the 10% range.”
Druckenmiller is widely regarded as one of the most successful money managers of his generation.
In 1981, he founded his own firm, Duquesne Capital Management.
Throughout his career, Druckenmiller delivered hefty returns, with Duquesne Capital reportedly never having a down year before he closed it to outside investors in 2010, citing the pressure of maintaining his high performance.
Druckenmiller is perhaps best known for his work with Soros at the Quantum Fund, where he served as lead portfolio manager from 1988 to 2000.
Together, they famously “broke the Bank of England” in 1992 by shorting the British pound.
This bold trade reportedly earned the Quantum Fund over $1 billion in a single day and cemented Druckenmiller’s reputation as an astute macro investor.
Bessent, who also went on to found his own hedge fund, was part of the Soros team during the 1992 Black Wednesday event.
Soros is often criticized by conservatives for using his wealth to support progressive causes, liberal political candidates and international organizations that promote left-wing causes which many on the right view as opposing national sovereignty and traditional values.
Bessent delivered a firm message on Sunday as global markets reacted negatively to the latest round of American tariffs.
Speaking on NBC’s Meet the Press with Kristen Welker, Bessent pushed back against fears that the new trade measures could tip the US economy into a downturn.
“I see no reason that we have to price in a recession,” Bessent said during the interview.
His remarks, echoed by similar statements from Commerce Secretary Howard Lutnick and White House trade advisor Peter Navarro, made it clear the Trump administration has no plans to reverse course on the broad set of tariffs announced the previous week.
According to Bessent, the move has already prompted more than 50 countries to reach out to the administration, but any potential negotiations will not happen overnight.
From Washington’s point of view, many nations have consistently acted unfairly in trade relationships, Bessent argued, suggesting these long-standing issues won’t be resolved quickly.
“Other countries have been bad actors for a long time,” he said, emphasizing the complexity of the current situation.
“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 latest Wall Street titan to publicly express reservations about tariffs.
Bill Ackman, the hedge fund billionaire who founded Pershing Square Capital Management, urged Trump to pause the imposition of tariffs for 90 days in order to allow countries to renegotiate trade deals with the US.
Ackman, who has been a vocal supporter of Trump, warned the president that he was leading the country toward a “self-induced economic nuclear winter” if he doesn’t show restraint.
Top White House adviser Kevin Hassett addressed Ackman’s comments during an appearance on Fox News Monday morning.
“I would urge everyone, especially Bill, to ease off the rhetoric a little bit,” said Hassett, who serves as the director of the White House Economic Council.
Jamie Dimon, CEO of JPMorgan Chase, expressed concern over the economic impact of new tariffs, stating: “The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession.”
Despite recent market declines, he noted that “prices remain relatively high,” and emphasized 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 Television 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 Post has sought comment from the White House and Bessent.
