Summary
Warren Buffett criticized Trump’s tariffs as inflationary and harmful to consumers, calling them “an act of war” that function as a tax on goods because “the Tooth Fairy doesn’t pay 'em!”
This marks Buffett’s first public comment on Trump’s current trade policies, which include 25% tariffs on Mexican and Canadian imports and an additional 10% tariff on Chinese goods starting March 4.
Buffett previously warned about negative global consequences from Trump’s aggressive trade moves during his first term.
Meanwhile, China has vowed to retaliate against the new tariffs.
He’s not whining about corporate profit being squeezed. Corporations absolutely will not take a loss on tariffs. All price increases will be passed onto the consumer. If anything, it will be used as an excuse to raise prices greater than the tariffs because they can blame the increase on tariffs just like blamed Covid for increases.