Warren Buffett, the billionaire investor, labeled tariffs as “an act of war, to some degree” when questioned about President Donald Trump’s plans regarding imported goods from other nations. On Tuesday, Trump’s 25% tariff on products from Mexico and Canada, along with a 10% levy on Chinese imports, went into effect.
In a CBS News interview that aired on Sunday, Buffett, who is 94, shared his thoughts on how tariffs impact the U.S. economy. “Actually, we’ve had a lot of experience with them [tariffs],” he remarked. “They’re an act of war, to some degree.”
In retaliation to Trump’s move, Canadian Prime Minister Justin Trudeau announced that Canada would impose tariffs on more than $100 billion worth of American goods over the next 21 days. Meanwhile, China introduced tariffs of up to 15% on various U.S. agricultural exports and expanded the list of U.S. companies facing export restrictions and other controls by approximately 20.
Several economists have cautioned that the tariffs could further fuel inflation, particularly affecting goods reliant on international supply chains, such as electronics and automobiles, according to CNN’s reporting.
“Over time, they’re a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” Buffett added. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”
During the interview, Buffett, who was there to discuss a documentary on the late Washington Post Publisher Katharine Graham, declined to comment on the current state of the economy. “Well, I think that’s the most interesting subject in the world, but I won’t talk, I can’t talk about it, though. I really can’t,” he said.
In his most recent annual letter to shareholders, Buffett offered some advice to President Trump. “Thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part,” Buffett wrote.
{Matzav.com}