Billionaire investor Warren Buffett criticized President Donald Trump’s tariffs on Canada, China, and Mexico, labeling them as “an act of war.” In an interview, Buffett highlighted that tariffs act like a tax on goods, potentially raising consumer prices. Despite his company’s extensive tax contributions, Buffett chose not to comment on the current US economy, finding it a fascinating topic. Meanwhile, Trump asserted that the tariffs, affecting over $918 billion in imports, would start soon. In retaliation, Canadian Prime Minister Justin Trudeau announced 25% tariffs on $155 billion of American goods, while Mexico prepared its own countermeasures.
Following US President Donald Trump’s announcement of extensive tariffs on Canada, China, and Mexico, billionaire investor Warren Buffett described the action as an “act of war.”
“Tariffs are actually—based on our extensive experience with them—they represent an act of war, to a certain extent,” Buffett stated during an interview with CBS on Sunday.
The 94-year-old investor, widely regarded as one of the greatest in history, remarked that tariffs effectively act as a tax on goods over time and could lead to increased prices for consumers.
Last month, Buffett disclosed that his company, Berkshire Hathaway, has paid the US government over $101 billion in taxes since he took over 60 years ago, making it the highest taxpayer in history.
“The Tooth Fairy doesn’t pay them!” Buffett, who leads Berkshire Hathaway, quipped.
“And then what? That’s the question you always need to ask in economics. You should always consider, ‘And then what?'” he continued.
Despite the unfolding situation, Buffett opted not to comment on the current state of the US economy.
“Well, I think that’s the most intriguing topic in the world, but I won’t discuss it, I really can’t,” he stated.
Trump Sparks Trade War
On Monday, Donald Trump asserted that Canada and Mexico cannot avoid his comprehensive tariffs, which are set to take effect on Tuesday.
The 78-year-old Republican, who returned to office in January, had introduced—and then paused—sweeping tariffs on imports in February, accusing two of America’s major trading partners of failing to combat illegal immigration and drug trafficking.
The tariffs are expected to affect over $918 billion worth of US imports from Canada and Mexico.
Canadian Prime Minister Justin Trudeau announced that he will impose tariffs on US imports starting Tuesday in retaliation against Trump’s planned levies.
“Canada will not allow this unreasonable decision to go unanswered,” said Trudeau, who is frequently ridiculed by the US President.
“If American tariffs are implemented tonight, Canada will, starting at 12:01 am EST tomorrow, impose 25 percent tariffs on $155 billion of American products,” he added.
Mexican President Claudia Sheinbaum indicated that her country has contingency plans regardless of Trump’s actions.
The US President also signed an order on Monday to raise a previously imposed 10 percent tariff on China to 20 percent. Beijing responded by warning that it would implement countermeasures to protect its own interests.
Additionally, he has threatened reciprocal tariffs on all US trading partners, including India.