Warren Buffett has weighed in on President Donald Trump’s tariffs, calling them an “additional tax on goods” that ultimately falls on consumers. In a rare comment, the Oracle of Omaha stated that companies are shifting costs to customers rather than absorbing the increased expenses.
Trump recently announced new tariffs on Mexico and Canada, as well as China, which will take effect on March 4. Buffett likened these measures to an “act of war,” stating that over time, tariffs can become a tax on goods.
Buffett’s comments come amid concerns about the impact of tariffs on the economy. The S&P 500 index has struggled this year, rising only 1% according to Google Finance. Some investors believe Buffett is anticipating a downturn in the market by dumping stocks and saving cash reserves.
Despite his typical avoidance of discussing the economy, Buffett made a rare exception during an interview with CBS News’ Nora O’Donnell. He chuckled when asked about the topic, saying he couldn’t discuss it further.
Source: https://www.binance.com/en/square/post/21031316670018