As US President Donald Trump unveiled sweeping tariffs on Canada, China and Mexico, billionaire investor Warren Buffett called the move an “act of war”.
“Tariffs are actually – we’ve had a lot of experience with them – they’re an act of war, to some degree,” Buffett told CBS on Sunday.
The 94-year-old, who is viewed as one of the world’s greatest investors, said tariffs over time serve as a tax on goods and could raise prices for consumers.
Buffett last month said his company, Berkshire Hathaway, paid the US government more than $101 billion in taxes since he took the helm 60 years ago, more than any other firm in history.
“The Tooth Fairy doesn’t pay ’em!” Buffett, the Berkshire Hathaway CEO, said.
“And then what? You always have to ask that question in economics. You always say, ‘And then what?'” he added.
Buffett, however, refused to comment on the current state of the US economy.
“Well, I think that’s the most interesting subject in the world, but I won’t talk, I can’t talk about it, though. I really can’t,” he said.
Trump Triggers Trade War
Donald Trump on Monday said that Canada and Mexico can’t avert his sweeping tariffs, due to come into effect on Tuesday.
The 78-year-old Republican, who returned to power in January, had unveiled — and then paused — blanket tariffs on imports in February, accusing two of the US’ major trading partners of failing to stop illegal immigration and drug trafficking.
The duties stand to impact over $918 billion worth of US imports from Canada and Mexico.
Canada Prime Minister Justin Trudeau said he will slap tariffs on US imports beginning Tuesday in response to levies pledged by Trump.
“Canada will not let this unjustified decision go unanswered,” Trudeau, who is often mocked by the US President, said.
“Should American tariffs come into effect tonight, Canada will, effective 12:01 am EST tomorrow, respond with 25 percent tariffs against $155 billion of American goods,” he added.
Mexican President Claudia Sheinbaum said her country has contingency plans, whatever decision Trump takes.
The US President also signed an order Monday to increase a previously imposed 10 percent tariff on China to 20 percent. Beijing warned it would take countermeasures against the new levies to safeguard its own interests.
He has also threatened reciprocal tariffs on all US trading partners, including India.
