Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has expressed skepticism about President Donald Trump’s use of tariffs as a trade tool. In an interview with CBS News’ Norah O’Donnell, Buffett described tariffs as “an act of war” that can lead to higher prices for consumers and disrupt global trade.
Buffett pointed out that tariffs are essentially a tax on imported goods, which is often passed on to consumers through increased prices. He also emphasized the importance of considering the long-term implications of tariffs, asking, “And then what?” who will bear the cost?
The Trump administration’s plans to impose 25% tariffs on goods from Canada and Mexico, as well as raise tariffs on China, have sparked concerns about a trade war that could increase costs for US consumers. Economists expect tariffs to impact everyday goods that rely on international supply chains.
Buffett has previously criticized tariffs, calling them “a very bad idea” in 2016. His comments on the topic are particularly noteworthy given Berkshire’s significant cash pile and record operating earnings in the fourth quarter.
The controversy surrounding tariffs is also having a broader impact on global trade, with China and other countries retaliating against US tariffs. Buffett’s views on this matter reflect his concerns about the potential consequences of protectionist trade policies.
Despite his reservations about tariffs, Buffett expressed optimism about the US economy, saying it was “the best place” where he managed most of his investments.
Source: https://edition.cnn.com/2025/03/03/business/warren-buffett-tariffs-trump/index.html