- Tariffs are “an act of war, to some degree,” according to Warren Buffett.
- The Berkshire Hathaway chairman and CEO told CBS, “Over time, they are a tax on goods.”
- President Trump has threatened tariffs against several countries, which some warn could hurt the US.
Warren Buffett is one of the world’s most legendary investors. So, what does he think of tariffs and how they’ll affect the economy?
The billionaire chairman and CEO of Berkshire Hathaway says tariffs are “an act of war, to some degree.”
“Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” he said in an interview with CBS Sunday Morning when asked how they’d impact inflation. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”
When asked about the economy today, Buffett said: “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 also didn’t answer further questions about politics.
The 94-year-old Oracle of Omaha added, though, that “a majority of any money I manage will always be in the United States” because “it’s the best place.”
President Trump has announced or threatened tariffs against several countries since taking office. Economists have warned that the US imposing tariffs would likely hurt the domestic economy and that additional costs would likely be passed on to the American consumer, rather than to foreign exporters.
Trump proposed 25% tariffs on Mexico and Canada that were initially supposed to take effect in February but were postponed. They are now expected to start Tuesday, though Commerce Secretary Howard Lutnick says they may no longer be at a 25% rate.
Trump also announced another 10% tariff on China, saying the country has not done enough to stop fentanyl entering the US, following a prior 10% tariff on China that took effect last month.
Trump has also announced a 25% tariff on all steel and aluminum imports to the US set to take effect March 12.
He said last month that he’d charge “a reciprocal tariff” on countries that have such taxes on American goods.
He’s threatened to impose a 25% tariffs on the European Union and said he’d slap a 100% tariff on BRICS nations if they replace the US dollar as reserve currency.
Buffett has supported presidential candidates in the past, previously backing Barack Obama and Hillary Clinton, but he declined to make an endorsement in the 2024 election.
“I’m worried about people impersonating me and that’s why we put that on the Berkshire website,” Buffett told CNBC about his decision not to endorse last year. “Nobody should believe anybody saying I’m telling them how to invest or how to vote.”
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