'Tooth fairy doesn't pay em': Warren Buffett takes a rare jab at Trump's tariff threats

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This marks the first remark from the 94-year-old business mogul on Trump’s trade and economic policies. Last week, the Republican firebrand announced the sweeping 25 per cent tariffs on imports from Mexico and Canada, which will now go into effect on March 4

Veteran investor and billionaire Warren Buffett took a rare jab at US President Donald Trump’s tariff threats, insisting that the punitive duties the president plans to impose on other nations could trigger inflation and hurt American consumers. In an interview with CBS News, Buffett quipped that “no tooth fairy” would pay taxes in such scenarios.

“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said Buffett, whose conglomerate Berkshire Hathaway has large businesses in insurance, railroad, manufacturing, energy and retail. “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” Buffett said with a laugh. “And then what? You always have to ask that question in economics. You always say, ‘And then what?’” the billionaire furthered.

Interestingly, this marks the first remark from the 94-year-old business mogul on Trump’s trade and economic policies. Last week, the Republican firebrand announced the sweeping 25 per cent tariffs on imports from Mexico and Canada, which will now go into effect on March 4. Meanwhile, China will be charged an additional 10 per cent tariff on the same state.

Buffett’s take on Trump

During Trump’s first stint in the office, the Berkshire chair and CEO opined at length in 2018 and 2019 about the trade conflicts that erupted at that time. He frequently warned that the Republicans’ aggressive moves could cause negative consequences globally. When asked about the current state of the economy, Buffett refrained from commenting on the matter.

“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 told CBS News. The billionaire has been on the defensive more since last year, rapidly dumping stocks and raising a record amount of cash.

This is coming at a time when Market Volatility has ramped up as concerns grew about a slowing economy, unpredictable policy changes from Trump, and overall stock valuations. This can be seen with the fact that the S&P 500 is up just about 1 per cent this year.