By Daily Mail (U.S.) | Created at 2025-03-04 14:06:40 | Updated at 2025-03-04 17:00:36
3 hours ago
Warren Buffett, the 94-year-old investment icon and longtime economic sage, isn't one to wade into political debates. But the so-called 'Oracle of Omaha' made some critical comments in a recent interview.
In a rare public rebuke, Buffett criticized President Donald Trump's sweeping tariff plan.
'Tariffs are actually, we've had a lot of experience with them,' he said in an interview on CBS New. 'They’re an act of war, to some degree.
'Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay 'em!'
Buffett's comments come as Trump barrels toward a negotiated deadline for imposing 25 percent tariffs on all Canadian and Mexican imports — a move that will likely spark a trade war.
The President originally planned to launch the tariffs in early February but struck a last-minute deal to delay them by a month. Instead, he hit Chinese imports with a 10 percent tariff.
The economic grace period for Canada and Mexico ends tomorrow. Another 10 percent tariffs will launch on Chinese goods.
Countries have vowed to retaliate, likely with their own slate of tariffs that will make American goods less competitive in global trades.
Warren Buffett, the 94-year-old billionaire, said tariffs are like an 'act of war'
The Trump camp argues that tariffs will boost government revenue, lower taxes, and spur domestic manufacturing.
But most economists and investors - including Buffett - warn they're more likely to drive up consumer prices and strain international trade relationships.
Before striking a last-second deal with the leaders of Canada and Mexico, global stock markets started to tumble.
Immediately after the tariffs were called off, the US stock market leveled off.
Markets reacted similarly on Monday after President Trump confirmed that he was imposing tariffs on the neighboring countries.
'No room left for Mexico or for Canada,' he said when asked about the negotiations to hold off the 25 percent tax. 'The tariffs, you know, they're all set. They go into effect tomorrow.'
The S&P 500 fell 1.8 percent, marking its worst day since December, the Dow Jones Industrial Index lost 1.5 percent and the tech-heavy Nasdaq was down 2.6 percent at market close.
Meanwhile, market followers have noticed a trend in Buffett's portfolio in the past few years.
The stock market reacted negatively to Trump's tariff plans in February and March
The Nasdaq lost 2.6 percent of its value after Trump re-upped his tariff commitment on Mexico and Canada
The billionaire investor has dumped several stocks and piled up on cash, sparking interest in Buffett's prediction about market futures.
Buffet sold both the Vanguard and State Street Global Advisors ETFs after touting both products. He offloaded shares of pharmaceutical giant DaVita.
Berkshire Hathaway also invested in five Japanese producers - Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.
The moves decreased the billionaire's holdings in other companies while increasing his cash on hand.
There have been two main reads of this move: either the 94-year-old is wary of the market and is pulling his cash to preserve its growth, or, he is preparing for the end of his illustrious career by handing over gobs of investment potential for his successors.
Either way, he remained coy when asked about his stake in the market and views about the economy's long-term projections.
'Well, I think that’s the most interesting subject in the world, but I won’t talk, I can’t talk about it, though,' he told CBS News. 'I really can’t.'
