Legendary investor Warren Buffett described tariffs as “an act of war” in a recent interview, as President Trump moves forward with his aggressive trade policies.
Speaking with CBS News anchor Norah O’Donnell in an interview that aired Sunday, Buffett was asked about the economic effects of tariffs. He responded by saying that tariffs have a long history, and while they are a tool of economic policy, they can also be viewed as a form of economic warfare. “Tariffs are actually, we’ve had a lot of experience with them,” Buffett explained. “They’re an act of war, to some degree.”
When asked about their impact on inflation, Buffett pointed out that tariffs function as a tax on goods, a cost that ultimately falls on consumers. “Over time, they are a tax on goods,” he said. With a laugh, he added, “I mean, the Tooth Fairy doesn’t pay ’em.”
Buffett also stressed the importance of thinking ahead when it comes to economic policy. “You always have to ask, ‘And then what?’” he said, emphasizing that tariffs can have unintended ripple effects throughout the economy.
The interview aired just as Trump’s 25% tariffs on Canada and Mexico were set to take effect on Tuesday. Earlier that day, Trump announced that there would be no further negotiations, signaling that the 30-day delay given to both nations had expired without a deal. “The tariffs, they’re all set. They go into effect tomorrow,” Trump stated, adding that there was “no room left” for last-minute agreements with Canada or Mexico.
Trump had originally postponed the tariffs by a month following talks with Canadian and Mexican leaders, during which the three countries discussed efforts to curb drug trafficking at the border. However, with those discussions failing to yield a breakthrough, the administration is now pushing forward with full enforcement of the new trade penalties.
Buffett was speaking with O’Donnell as part of a documentary on Katharine Graham, the late publisher of The Washington Post and a close friend of his. While known for his deep insights on financial markets, Buffett refrained from making broad economic predictions in this interview, likely aware of the weight his words carry in the financial world. When pressed on his thoughts about the state of the economy, he simply responded, “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.”