Legendary investor Warren Buffett discussed the economic impact of tariffs in a rare media interview published on Sunday.
Buffett was interviewed by CBS News’ Norah O’Donnell as part of a documentary on Washington Post publisher Katharine Graham, and the legendary Berkshire Hathaway CEO talked about the economic impact of the Trump administration’s pending tariffs.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war to some degree,” Buffett said.
“Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” Buffett jokingly said. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”
WARREN BUFFETT, IN ANNUAL LETTER, TOUTS BERKSHIRE HATHAWAY’S SUCCESS
Buffett’s remarks come as President Donald Trump’s planned 25% tariffs on imported goods from Mexico and Canada are expected to take effect on Tuesday, along with an additional 10% tariff on Chinese goods, barring a last-minute postponement by the White House.
Trump has proposed the creation of an “External Revenue Service” to collect those tariffs, which he argues are paid by those outside the country. However, importing firms are responsible for paying the cost of the tariff, which is currently collected by the U.S. Customs and Border Protection agency.
WARREN BUFFETT TOUTS US STOCK HOLDINGS, JAPAN INVESTMENTS
O’Donnell asked Buffett about the condition of the U.S. economy, but he declined to weigh in on the subject directly.
“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 said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BRK.A | BERKSHIRE HATHAWAY INC. | 765,919.97 | -9,080.01 | -1.17% |
| BRK.B | BERKSHIRE HATHAWAY INC. | 513.83 | +11.42 | +2.27% |
Buffett was also asked about his view on investing in America, saying that it will always be the primary destination for funds from his portfolio.
“A majority of any money I manage will always be in the United States,” Buffett said. When asked why that is, he responded, “It’s the best place! I was lucky to be born here.”
WARREN BUFFETT’S ANNUAL LETTER TO BERKSHIRE HATHAWAY SHAREHOLDERS: READ HERE
Berkshire Hathaway recently released its annual report for 2024 which included a letter from Buffett in which he discussed the firm’s large cash holdings and his preference for equity investment.
“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities,” he said. “That preference won’t change. While our ownership in marketable equities moved downward last year from $354 billion to $272 billion, the value of our non-quoted controlled equities increased somewhat and remains far greater than the value of the marketable portfolio.”
“Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities – mostly American equities although many of these will have international operations of significance. Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned,” Buffett wrote.
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