Warren Buffett comments on Trump’s tariffs

Legendary investor Warren Buffett made a rare comment about President Donald Trump’s tariffs, saying that punitive fees could lead to inflation and hurt consumers.

Buffett, whose Berkshire Hathaway company owns large companies in insurance, railroads, manufacturing, energy and retail, said: “We’ve had a lot of experience with tariffs. Sometimes they’re a bit of a declaration of war.”

According to CNBC, Buffett added: “Over time, it’s a tax on goods!” He then continued by saying: “And what’s next? You always have to ask that question in economics. You always say, what’s next?”

This is the first public comment from the 94-year-old “Sage of Omaha” on Trump’s trade policies.

Last week, Trump announced that 25% tariffs on imports from Mexico and Canada would go into effect on March 4, and that China would be subject to an additional 10% tariff on the same date. China has vowed to retaliate.

During Trump’s first term, Berkshire Hathaway chairman and CEO Buffett spoke at length in 2018 and 2019 about the trade disputes that had arisen, warning that the Republican president’s aggressive moves could have negative consequences worldwide.

When asked about the current state of the economy by CBS, Buffett declined to comment directly.

“I think it’s the hottest topic in the world, but I’m not going to talk about it, I can’t talk about it, frankly, I can’t,” Buffett said.

Buffett has been on the defensive over the past year, rapidly liquidating stocks and raising a record amount of cash. Some have viewed Buffett’s conservative moves as a negative call about the market and the economy, while others believe he is preparing his successor by trimming large positions and building cash.

Market volatility has increased recently as concerns about a slowing economy, unpredictable policy shifts from Trump and overall stock valuations have grown. The S&P 500 is up about 1% this year.