Legendary investor Warren Buffett has made a rare public comment on President Donald Trump’s tariffs, saying punitive duties could trigger inflation and hurt consumers.
Buffett stated that tariffs are essentially a tax on goods, comparing it to the Tooth Fairy not paying for the things she collects. He also warned of potential negative consequences globally due to Trump’s trade policies.
This marks Buffett’s first public comment on Trump’s trade policies since 2018 and 2019 when he addressed the issue during Trump’s first term.
Buffett has been cautious about his investments, rapidly dumping stocks and raising a record amount of cash in recent months. His moves have led some to speculate that he may be preparing Berkshire Hathaway for succession by reducing oversized positions and building up cash reserves.
The S&P 500 is currently up just over 1% this year, amidst market volatility caused by concerns about a slowing economy and unpredictable policy changes from the Trump administration.
Source: https://www.cnbc.com/2025/03/02/warren-buffett-calls-trumps-tariffs-a-tax-on-goods-says-the-tooth-fairy-doesnt-pay-em.html