Warren Buffett, one of the most successful investors in history, has expressed his views on tariffs multiple times. In a recent interview in March 2025, he compared tariffs to the Tooth Fairy, emphasizing their long-term effects as a tax on goods. “Over time, they are a tax on goods.
I mean, the tooth fairy doesn’t pay ’em!” Buffett remarked. He stressed the importance of considering the consequences of tariffs, saying, “You always have to ask that question in economics. You always say, ‘And then what?'”
Buffett also noted that tariffs are “an act of war, to some degree.” Despite this, he affirmed his confidence in the U.S. market: “A majority of any money I manage will always be in the United States.
Buffett cautions against long-term tariffs
It’s the best place! I was lucky to be born here.”
Social media has been abuzz with false reports about Buffett’s stance on tariffs. One comment inaccurately praised tariffs and was debunked by credible sources.
“There are reports currently circulating on social media regarding comments allegedly made by Warren E. Buffett. All such reports are false.”
In another interview, Buffett warned about the potential consequences of a trade war. “If we actually have a trade war, it will be bad for the whole world … everything intersects in the world,” he said.
Reflecting on the benefits of free trade, Buffett added, “A world that adjusts to something very close to free trade … more people will live better than in a world with significant tariffs and shifting tariffs over time.”
Buffett’s views on tariffs highlight the interconnectedness of global markets and the overarching benefits of free trade. As the U.S. grapples with its position in the global economy, his words serve as a reminder of the potential consequences of unchecked trade imbalances and the importance of judicious economic strategies.
