Warren Buffett: Tariffs Are an ‘Act of War, to Some Degree’

Investing giant Warren Buffett has warned that President Trump’s tariffs could hurt consumers.

“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” Buffett, whose Berkshire Hathaway invests in a number of industries bound to be affected by the tariffs, said in an interview with CBS News Sunday (March 2).

“Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” Buffett said. “And then what? You always have to ask that question in economics. You always say, ‘And then what?’”

Trump announced last week that the U.S. would impose new tariffs on Canada, Mexico and China beginning March 4. In a post on his Truth Social platform, he argued the tariffs will deter the flow of illegal drugs from Canada and Mexico, as well as the manufacturing and supply of drugs by China.

“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump wrote in the post.

“China will likewise be charged an additional 10% Tariff on that date,” he wrote. “The April Second Reciprocal Tariff date will remain in full force and effect.”

The levies on Canada and Mexico will be 25%, while the 10% tariff on China will be placed on top of the 10% one that took effect last month.

The tariffs have shaken U.S. consumer confidence, and have led to warnings from industry groups about their effect on commerce. For example, the National Restaurant Association has written to the president, saying the tariffs could cause that sector more than $12 billion and bring about higher menu prices.

“We urge you to exempt food and beverage products to minimize the impact on restaurant owners and consumers,” the association said in the letter seen by Bloomberg News. “This will help keep menu prices stable.”

Research by PYMNTS Intelligence shows that  57% of consumers and small businesses who consider themselves knowledgeable about the tariffs have a negative opinion of them.

“They’re not only worried about the big picture economy (though 40% are concerned about that, too),” PYMNTS CEO Karen Webster wrote last month.

“They’re worried about their own bottom line. That’s because 78% of those consumers anticipate higher prices and 75% expect product shortages. If you’re getting flashbacks to those empty store shelves during COVID, you’re not alone. It’s the same kind of anxiety that consumers now express, just with a different root cause.”