Trump tariffs: This is an “act of war,” says Warren Buffet
Virendra Pandit
New Delhi: America’s billionaire investor and philanthropist Warren Buffett has slammed US President Donald Trump’s latest tariff plans, calling them “an act of war, to some degree”, the media reported.
His remarks follow the US imposing new tariffs on Canada, Mexico, and China.
In an interview with CBS, aired on Sunday, Buffett, 94, said, “We have had a lot of experience with them — they’re an act of war, to some degree.”
He warned that tariffs ultimately act as a tax on consumers. “I mean, the tooth fairy doesn’t pay ’em,” he joked.
Effective Tuesday, the US government imposed a 25 percent tariff on imports from Canada and Mexico, while increasing tariffs on Chinese goods from 10 percent to 20 per cent.
Several economists warned that these measures will make everyday items, including foodstuff, and even cars and electronics, more expensive for US buyers. The move has raised concerns of a trade war, with China already retaliating and the European Union potentially facing more ‘reciprocal tariffs.’
Buffett, who usually avoids political commentary, has been vocal about his concerns over tariffs in the past as well.
Even during the earlier Trump presidential years of 2018 and 2019, he had warned that aggressive trade policies could negatively impact the global economy. He reiterated the same in his annual letter this year, urging the US government to be cautious with its financial policies.
Buffett expressed gratitude for the US system, saying his company, Berkshire Hathaway, hoped to contribute even more in taxes in the future. However, he emphasised the importance of spending wisely and supporting those who face hardships through “no fault of their own.” He also emphasized that maintaining a stable currency requires both “wisdom and vigilance”.
About the broader economic outlook, Buffett remarked: “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.”
However, US Commerce Secretary Howard Lutnick dismissed his remarks, calling them “silly.” In a CNN interview, he even suggested that tariffs could replace the IRS (Internal Revenue Service) in the US.
Despite his criticism of tariffs, Buffett was optimistic about investing in the US, calling it “the best place” for investments. His Berkshire Hathaway is currently holding a record USD 334.2 billion in cash, having sold off stocks like Apple and Bank of America.
