US President Donald Trump is set to impose tariffs on Canada and Mexico, along with additional tariffs on China, from March 4. Breaking his silence on the string of Trump’s tariff announcements, legendary investor Warren Buffet has called them, “an act of war, to some degree.”
In an interview with CBS over the weekend, Buffett said that he’s had a lot of experience with tariffs and according to him, they’re an act of war to some extent. He wet on to say that over a period of time, they are tax on goods. “I mean, the Tooth Fairy doesn’t pay ’em!” Buffet added with a chuckle. He further commented saying, “And then what? You always have to ask that question in economics. You always say, and then what?”
Buffett, who stays away form commenting on anything political, had also addressed the issue in his annual letter. He urged the US government to be careful and responsible with the money he sends.
The legendary investor had expressed gratitude in his letter, while stating that in the future, Berkshire hopes to send even bigger payments than last year. He advised the government to spend wisely and highlighted the importance of helping those who face hardship through “no fault of their own”. He had also written that maintaining a stable currency requires both “wisdom and vigilance”.
Buffett, in his interview with CBS, was also asked about the economy, to which he responded by saying, “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.”
This is not the first time, Buffett has spoken on Trump’s tariffs. In 2018 and 2019, he had said in multiple interviews during Trump’s first term as President of the United States, that the aggressive tariffs would definitely hurt the global economy.
Trump, as of now, is sticking to his plan of imposing tariffs on Canada, Mexico and China. Last week, he revealed new trade actions that target Mexico, Canada, and China. Starting March 4, there will be a 25% tax on imports from Mexico and Canada, along with an extra 10% tax on goods from China.