Warren Buffett, the CEO of Berkshire Hathaway, recently criticized tariffs in an interview with CBS. He called tariffs “an act of war” and explained that they tax goods, leading to higher consumer prices. “The Tooth Fairy doesn’t pay ’em!” Buffett said, emphasizing that the financial burden of tariffs falls on the public.
Buffett’s comments come from former President Donald Trump, who imposed 25% tariffs on goods from Canada and Mexico and increased tariffs on Chinese imports from 10% to 20%. Economists predict these moves will raise costs for U.S. consumers on various everyday products that depend on international supply chains. Commerce Secretary Howard Lutnick dismissed Buffett’s remarks as “silly” and suggested tariffs could replace the need for the Internal Revenue Service.
Buffett criticizes tariffs as costly
However, this statement is historically inaccurate, as the federal income tax was established in 1913 before the U.S. entered World War I. Buffett has long been vocal about the perils of protectionist trade policies.
He previously criticized Trump’s tariff proposals during the 2016 presidential campaign, calling them “a very bad idea.
Despite his critical views on tariffs, Buffett remains optimistic about the U.S. economy. Berkshire Hathaway’s cash pile has grown to a record $334.2 billion by the end of the fourth quarter, demonstrating confidence in the country’s economic stability and potential for growth. “It’s the best place,” Buffett stated.
“I was lucky to be born here.”
Image Credits: Photo by Wolfgang Weiser on Unsplash
