Warren Buffett, a well-known investor who runs the vast conglomerate Berkshire Hathaway, described tariffs as “acts of war.” Interview With CBS, which aired on Sunday.
“As time goes by, they’re an attack on the goods,” Buffett responds to questions about their impact on inflation, suggesting that consumers will face higher prices as a result. “I mean, the tooth fairies don’t pay them,” he said.
Trump’s responsibilities for tariff planning, a core part of his new administration’s economic policy, came just days before he wiped out tariffs in Canada and Mexico. Trump said Monday that tariffs add a 25% charge to all imports from Mexico and Canada, as well as 10% of Chinese products, will come into effect on Tuesday.
Trump has delayed tariffs on imports in Canada and Mexico for a month, with a clear confirmation that stock prices will be repeated this time. The S&P 500 has dropped nearly 2%, and this year is the worst trading day so far.
Berkshire Hathaway recently built up a large investment in the Treasury bill, government debt. This is a low-risk alternative to bonds and stocks. “You have to always ask that question in economics: And what?” Buffett said in an interview. “The prices will be 10 years from now, 20 years from now, 30 years from now.”
He was also asked about his thoughts on Elon Musk’s involvement in Trump’s administration, but most biased the question.
“I’d rather not get into it,” he said with a laugh. “I talked to Elon several times.”
