Richard Branson has called on Donald Trump to realise his “mistake” over his global tariffs strategy and change course after stock market plunges wiped trillions of dollars off company values and people’s investments and pensions.
The founder of the Virgin empire said that with a swift reversal back to sensible economic policy, America and the rest of the world could still avoid the catastrophic fallout of the tariffs, warning against making people everywhere poorer.
Share prices tumbled around the world on Friday as markets took fright over the US president’s sweeping introduction of tariffs on almost every country. Britain’s FTSE-100 and leading American indexes all suffered their worst drops since the start of the Covid-19 pandemic in 2020.
China‘s retaliatory match of a 34 per cent tariff on imports of all US products launched a trade war between the world’s two biggest economies.
Economists are warning of a spike in inflation and weaker growth. JP Morgan says there is a 60 per cent chance of a recession in the US.
In a stark message aimed at Mr Trump, Mr Branson posted on X: “Strong leadership means taking risks and trying things – but when it doesn’t work, realising 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.”
He added: “Courage & self-awareness are cornerstones of true leadership. That includes quickly acknowledging errors & making corrections.
“With a swift reversal back to sensible economic policy, America & the rest of the world can still avoid the catastrophic fall out these tariffs will inflict.”
As well as share prices, the value of the US dollar and even gold fell on Friday.
US Federal Reserve chair Jerome Powell said the tariffs and their probable economic and inflationary effects were “significantly larger than expected” and “highly likely” to lead to “at least a temporary rise in inflation” in the US.
But the president insisted he would not back down, claiming the tariffs would ultimately benefit the US economy.
Analysts for AJ Bell estimate that about £3.8 trillion has been wiped off the value of the global stock market since Mr Trump’s announcement, which he billed as “Liberation Day” for US workers.
Sir Keir Starmer is due to hold talks with world leaders over the weekend, as nations reel from the economic hit and decide whether to reciprocate with tariffs on Washington.
Sir Keir was yesterday urged by former prime minister Sir Tony Blair not to retaliate, saying such a move wouldn’t be in the UK’s “best interests.”
