Warren Buffett Weighs In on Donald Trump Tariff Plans

Legendary investor Warren Buffett has warned that President Donald Trump‘s tariffs on goods imported from foreign countries such as Canada and Mexico could have a disastrous impact on American consumers.

In a rare admission for the so-called “Oracle of Omaha,” who normally avoids commenting on politics and the White House agenda, Buffett told CBS News’ Norah O’Donnell that tariffs constituted an “act of war” and “a tax on goods.”

Why It Matters

Trump made tariffs one of the cores of his 2024 presidential campaign pledges, promising that many of America’s problems—including the high cost of living and housing affordability—could be solved through them. However, many experts have raised concerns that while tariffs could partially benefit the country’s economy, American consumers might eventually have to shoulder their cost through higher prices.

Buffett’s remark is likely to strengthen these concerns, despite the Trump administration’s dismissal of similar warnings before.

What To Know

Last week, the president announced that 25-percent tariffs on imports from Canada and Mexico would come into force on March 4, after having been paused for a month in early February as the two countries promised to increase border control efforts.

China, which is already facing 10-percent tariffs, will be charged an additional 10 percent on the same date, according to Trump.

Beijing has promised to retaliate, and it is a threat they are likely to follow through on. Earlier this month, China imposed additional tariffs on some American products, including a 15-percent border tax on coal and liquefied natural gas products and 10-percent charges on crude oil, agricultural machinery and large-engine cars.

Canada has also vowed swift retaliation in response to the Trump administration’s latest “unjustified” tariffs, as Prime Minister Justin Trudeau called them—a move that is could spark a trade war between the two countries. It is exactly how Buffett described them, warning that the tariffs’ impact could be felt the hardest by everyday Americans.

“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” the 94-year-old investor told O’Donnell. “Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” he said. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”

While Buffett rarely gets involved in politics, it is not the first time that he has spoken up about Trump’s tariff agenda. In 2018 and 2019, he wrote at length about the trade conflicts triggered by the president’s policies, warning that they could have negative consequences on the global economy as well as the American.

Asked about the state of the nation’s economy, Buffett told O’Donnell last week that he could not talk about it. “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,” he said.

What People Are Saying

President Donald Trump said of the tariffs coming into effect on March 4: “Drugs are still pouring into our country from Mexico and Canada at very high and unacceptable levels. A large percentage of these drugs, much of them in the form of fentanyl, are made in, and supplied by, China.”

Mexican President Claudia Sheinbaum said at a recent press conference: “I hope we can reach an agreement and on 4 March we can announce something else.”

Jean Simard, the president of the Aluminium Association of Canada, told The New York Times: “The 10-percent tariffs years ago were highly disruptive. Twenty-five-percent tariffs will be highly destructive.”

Lin Jian, a spokesperson for the Chinese Ministry of Foreign Affairs, said: “Pressure, coercion, and threats are not the correct way to deal with China.”

Liu Pengyu, a spokesperson for the Chinese Embassy in the U.S., said: “The unilateral tariffs imposed by the U.S. will not solve its own problems, nor will it benefit the two sides or the world.”

What’s Next

In his annual letter to shareholders, released on Saturday, Buffett urged the Trump administration to use the $26.8 billion in income taxes paid by Berkshire Hathaway last year wisely and to the benefit of the country.

“Thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024,” Buffett wrote in the letter.

“Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part.”