Warren Buffett broke his silence on President Trump’s trade policies, comparing his planned tariffs on Canada and Mexico to an “act of war.”
The legendary investor behind Berkshire Hathaway – which has large businesses in insurance, railroads, manufacturing, energy and retail – spoke before the president moved forward with implementing 25% tariffs on Canada and Mexico, and 20% on China as of midnight Tuesday.
“Actually, we’ve had a lot of experience with them [tariffs],” Buffett said during an interview with CBS News for a documentary on Katherine Graham, the late Washington Post publisher.
“They’re an act of war, to some degree,” he added.
Canada and Mexico had threatened to respond with their own taxes before Trump paused his decision for the levies last month.
Experts have warned the tariffs could reheat inflation, particularly impacting the automotive industry and sending prices for new cars soaring as much as $12,000.
Buffett, the 94-year-old “Oracle of Omaha,” seeming agreed during the CBS News sit-down.
“Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” Buffett said with a laugh.
“And then what? You always have to ask that question in economics. You always say, ‘And then what?’”
Buffett declined to comment on the current state of the economy.
“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,” Buffett said.
Buffett has adopted an increasingly conservative investment strategy – dumping stocks and raising a record amount of cash.
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