Warren Buffett has criticized President Donald Trump’s tariff policies. He called them a tax on goods that affects consumers. “Tariffs are actually an act of war, to some degree,” Buffett said.
He noted that tariffs can lead to inflation and harm the public. Buffett made these comments while being interviewed for a documentary about Katharine Graham. She was the late publisher of The Washington Post.
“Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” Buffett joked. This was his first public statement on Trump’s trade policies.
Last week, Trump announced new tariffs that will start on March 4. China will be charged an extra 10% tariff on the same date. China has said it will retaliate.
Buffett critiques Trump’s tariff impacts
During Trump’s first term, Buffett warned about the global impact of aggressive trade policies. However, when CBS recently asked him about the economy, Buffett did not comment directly.
“Well, I think that’s the most interesting subject in the world, but I won’t talk about it. I really can’t,” he said. In the past year, Buffett has been defensive in his investing.
Some analysts think this shows he is cautious about the market and economy. Others believe he is preparing Berkshire Hathaway for his successor. He has reduced large positions and increased cash reserves.
The stock market has been volatile lately. This is due to worries about a slowing economy, unpredictable policy changes from Trump, and high stock valuations. The S&P 500 has only risen about 1% this year.
Buffett’s comments provide valuable insight into the economic effects of current trade policies.
Image Credits: Photo by Rinson Chory on Unsplash
