Legendary investor Warren Buffett likened tariffs to “acts of war” in a new interview, as President Trump doubles his embrace of economic strategy.
In an interview that aired Sunday on CBS News, anchor Nora O'Donnell asked Buffett about the impact of tariffs on the economy.
“In fact, tariffs, we've had a lot of experience with them,” Buffett responded. “They are some acts of war.”
Regarding the impact of tariffs on inflation, Buffett said, “Over time, they are taxes on goods.”
“I mean, the tooth fairy won't pay,” he added with a laugh.
Buffett said it's important to look a step ahead in economics and ask, “And what?”
“You have to always ask that question in economics,” he said. “You always say 'And what?' ”
The interview aired as Trump's 25% tariffs in Canada and Mexico are scheduled to come into effect Tuesday. Earlier on Monday, Trump announced that there was no room for trading before the 30-day delay expired.
“Taxes, they're all set, they'll come into effect tomorrow,” Trump added, “there's no rooms left in Mexico or Canada” to make a deal by midnight.
Last week, Trump warned that after a conversation with Canadian and Mexican leaders, he delayed them for a month, tariffs had moved forward and agreed to action to deal with the drug flow at the border.
Buffett Joined O'Donnell for a documentary About his best friend, the late Cathering Laham, a longtime publisher of the Washington Post.
Buffett declined to comment on the economy during the interview, clearly acknowledging the power that his words must shake up the market.
“Well, I think it's the most interesting subject in the world, but I can't speak, I can't talk about it. I can't really talk about it,” he said as he sought his thoughts on the state of the economy.
