Warren Buffett criticized tariffs as “an act of war” in a CBS interview, highlighting their inflationary impact and the resulting higher consumer prices. His comments came just before President Trump’s planned tariffs on Canada and Mexico, imposing a 25% fee on all imports from those countries, and an additional 10% on Chinese goods. The announcement contributed to a nearly 2% drop in the S&P 500, the worst trading day of the year. Buffett, who has invested heavily in Treasury bills, stressed the long-term economic consequences, warning that prices will continue to rise over the coming decades.
Warren Buffett, the renowned investor behind the vast conglomerate Berkshire Hathaway, characterized tariffs as “an act of war” during a CBS interview that aired on Sunday.
“Ultimately, they’re assaults on goods,” Mr. Buffett stated, in answer to a query about their inflationary effects, implying that consumers will face increased prices as a consequence. “I mean, the tooth fairy doesn’t cover those costs,” he added.
His criticism of President Trump’s tariff strategies, a central element of the new administration’s economic agenda, came just days ahead of sweeping tariffs on Canada and Mexico that were anticipated to be implemented. On Monday, Mr. Trump announced that tariffs imposing a 25 percent levy on all imports from Mexico and Canada, along with an extra 10 percent on Chinese goods, would come into effect on Tuesday.
Mr. Trump had postponed the tariffs on Canadian and Mexican imports by a month, and the clear indication that they would be enforced this time caused stock prices to tumble. The S&P 500 plummeted nearly 2 percent, marking its worst trading day so far this year.
Berkshire Hathaway has recently increased its investment in Treasury bills, which are considered a safer option compared to corporate bonds and stocks. “You always need to ask the fundamental question in economics: And then what?” Mr. Buffett mentioned in the interview. “Prices are bound to be higher 10 years from now, 20 years from now, 30 years from now.”
He was also inquired about his views on Elon Musk’s role in Mr. Trump’s administration, but largely sidestepped the question.
“I’d better not delve into that,” he chuckled. “I’ve spoken to Elon a few times.”