Warren Buffett broke the silence over President Trump's trade policy and compared his planned tariffs in Canada and Mexico with “acts of war.”
The legendary investors behind Berkshire Hathaway, a large company in insurance, rail, manufacturing, energy and retail, spoke before the president has implemented 25% tariffs in Canada and Mexico, with 20% moving forward as of late Tuesday night.
“In fact, we've had a lot of experience with them. [tariffs]Buffett spoke in an interview with CBS News for a documentary by late Washington Post Publishing Company Katherine Graham.
“They are, to some extent, acts of war,” he added.
Canada and Mexico had threatened to respond with their own taxes before Trump suspending tax decisions last month.
Experts have warned that tariffs could reheat inflation, sending new cars prices that have particularly affected the automotive industry, with rising $12,000.
Buffett, the 94-year-old “Oracle of Omaha,” appears to have agreed in a CBS News sit-in.
“As time goes by, they're taxes on goods, meaning the tooth fairies don't pay!” Buffett said with a laugh.
“Then what? You have to always ask that question in economics. You always say, 'Then what?' ”
Buffett declined to comment on the current state of the economy.
“Well, I think it's the most interesting subject in the world, but I don't talk about it. I can't talk about it. I can't really do,” Buffett said.
Buffett is adopting an increasingly conservative investment strategy. They dump stocks and raise record amounts of cash.
