Billionaire investor Warren Buffett has some strong words about US President Donald Trump's newly-imposed tariffs, calling them "an act of war".
“Tariffs are actually—we've had a lot of experience with them—they're an act of war, to some degree,” Buffett said in an interview with CBS that aired on Sunday.
Buffett said tariffs end up being a tax on goods that consumers have to bear. "The Tooth Fairy doesn’t pay ‘em!" he joked.
Buffett’s comments come as Trump has pushed ahead with new tariff plans. Starting Tuesday, his administration will slap a 25% tariff on goods from Canada and Mexico. The US President is also hiking tariffs on Chinese imports, raising the rate from 10% to 20%.
Economists say this will make everything from cars to electronics more expensive for American buyers.
The back-and-forth has raised fears of another trade war, with China already retaliating and the European Union in Trump’s crosshairs for more “reciprocal tariffs.”
However, US Commerce Secretary Howard Lutnick shrugged off Buffett’s criticism, calling it "silly" in a CNN interview.
Lutnick even suggested tariffs could replace the IRS, though he got his history wrong—claiming the IRS was created during World War I. In reality, the IRS dates back to the Civil War, and federal income tax became permanent in 1913.
Buffett didn’t elaborate much on his “act of war” comment, but tariffs have long been linked to protectionist policies. This is also not the first time Buffett has criticized tariffs. He had called Trump’s 2016 trade policies “a very bad idea.”
He also stayed quiet on broader economic outlooks but said the US is “the best place” for investing. Berkshire Hathaway, meanwhile, is sitting on a record cash pile of $334.2 billion, having sold off stocks like Apple and Bank of America.
Source: India Today