Warren Buffett Speaks Out: Why He Calls Trump’s Planned Tariffs an ‘Act of War’

Warren Buffett recently shared his thoughts on President Trump’s trade policies, particularly the tariffs on Canada and Mexico. He noted that these tariffs felt like an “act of war.”

The well-known investor, who leads Berkshire Hathaway, spoke out before the president announced significant tariffs: 25% on goods from Canada and Mexico and 20% on imports from China. This announcement was set to take effect at midnight on a Tuesday.

Buffett mentioned his experience with tariffs during an interview with CBS News. He remarked, “They’re an act of war, to some degree.” His comments came right as Canada and Mexico were preparing to respond with their own tariffs in retaliation.

Experts have raised concerns that these tariffs could lead to higher inflation, especially in the automotive sector. Some predict that the cost of new cars could rise by as much as $12,000 due to these measures.

The 94-year-old investor, often called the “Oracle of Omaha,” pointed out that tariffs are essentially a tax on goods. He humorously noted, “The tooth fairy doesn’t pay ’em!” This illustrates how tariffs ultimately impact consumers.

Buffett emphasized the importance of looking ahead in economics, asking, “And then what?” It’s a reminder to consider the broader implications of such financial policies.

While Buffett found the state of the economy fascinating, he chose not to comment on it directly. He said, “I think that’s the most interesting subject in the world, but I won’t talk, I can’t talk about it, though.”

Recently, Buffett has shifted his investment strategy. He is selling off stocks and holding a large amount of cash, indicating a more cautious approach in the current market.

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