Legendary investor Warren Buffett has taken the unusual step of speaking publicly about politics and criticizing the U.S. president’s policies.
In this case, Buffett criticized U.S. President Donald Trump’s tariff measures, saying the duties placed on foreign imports entering America could trigger inflation and hurt consumers.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said Buffett in a television interview with CBS News.
“Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em,” said Buffett, who is age 94, adding, “And then what? You always have to ask that question in economics. You always say, ‘And then what?’”
Buffett’s comments come as the Trump administration prepares to implement sweeping 25% tariffs on most imports from Mexico and Canada on March 4.
Trump is also placing an additional 10% tariff on Chinese imports, bringing the total duty on those goods to 20%.
Buffett has spoken at length in the past about how damaging trade conflicts can be and warning that tariffs have negative consequences for the global economy.
The latest comments on tariffs also come as Buffett remains on the defensive with his investment portfolio, selling stocks and raising a record amount of cash that totaled more than $300 billion U.S. at the end of last year.
Some analysts have speculated that Buffett is bearish on the current stock market and U.S. economy. However, Buffett himself has refrained from commenting on his stock buys and sells.
Buffett’s holding company, Berkshire Hathaway (BRK.B) has seen its more affordable Class B stock rise 14% so far this year to trade at $513.83 U.S. per share.
