Warren Buffett slams Trump's tariffs imposition, calls it 'an act of war'

The US government imposed a 25 per cent tariff on imports from Canada and Mexico on Tuesday, while increasing tariffs on Chinese goods from 10 per cent to 20 per cent

Billionaire investor Warren Buffett has slammed US President Donald Trump’s latest tariff plans, calling them “an act of war, to some degree”. His remarks follow the US imposing new tariffs on Canada, Mexico, and China on Tuesday.

 

Speaking in an interview with CBS, which aired on Sunday, Buffett shared his concerns about tariffs. He 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.

 

US imposed tariffs on Canada, Mexico & China

 

The US government imposed a 25 per cent tariff on imports from Canada and Mexico, while increasing tariffs on Chinese goods from 10 per cent to 20 per cent. Economists warn that these measures will make everyday items like 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 typically avoids political commentary, has been vocal about his concerns over tariffs in the past. 

 

 

Impact of aggressive trade policies 

 

In 2018 and 2019, the billionaire investor 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 his gratitude for the US system, mentioning Berkshire Hathaway hopes 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 stressed that maintaining a stable currency requires both “wisdom and vigilance”.

 

When asked about the broader economic outlook, Buffett remained tight-lipped. “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.

Howard Lutnick dismissed Buffett’s remarks

 

Meanwhile, US Commerce Secretary Howard Lutnick dismissed Buffett’s remarks, calling them “silly” in a CNN interview. Lutnick even suggested that tariffs could replace the IRS (Internal Revenue Service). 

 

Despite his criticism of tariffs, Buffett remains optimistic about investing in the US, calling it “the best place” for investments. His company, Berkshire Hathaway, is currently holding a record $334.2 billion in cash, having sold off stocks like Apple and Bank of America.