Warren Buffett compared President Donald Trump’s planned tariffs on Canada and Mexico to an “act of war.” The legendary investor behind Berkshire Hathaway spoke out before Trump went on to implement 25% tariffs on Canada and Mexico, and 20% on China.
“Actually, we’ve had a lot of experience with them [tariffs],” Buffett said during an interview with CBS News for a documentary on Katherine Graham, the late Washington Post publisher.
“They’re an act of war, to some degree,” Buffet added.
‘The tooth fairy doesn’t pay ’em!’
Before President Trump paused his decision for the levies in February, Canada and Mexico had threatened to respond with their own taxes. Experts believe the tariffs could end up reheating inflation and would particularly impact the automotive industry, the New York Post reported. They also might end up sending prices for new cars rising as much as $12,000.
Buffet, 94, seemed to agree. “Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” he said.
Buffet added, “And then what? You always have to ask that question in economics. You always say, ‘And then what?’”
Buffet refused to make any remarks on the current state of the economy. “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,” Buffett said.
China and Canada have retaliated against the United States after Trump imposed his tariffs. China reportedly revealed its plans to impose fresh tariffs on various agricultural imports from the US next week, with the country’s finance minister saying that additional 15% tariffs would be imposed on chicken, wheat, corn and cotton, as well as 10% tariffs on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. Justin Trudeau said Ottawa would respond with immediate 25% tariffs on C$30bn ($20.7bn) worth of US imports. Previously, he said Canada would be targeting US beer, wine, bourbon, home appliances and Florida orange juice.
