(Image source from: Cnbc.com)
As President Donald Trump announced extensive tariffs targeting Canada, China, and Mexico, billionaire investor Warren Buffett labeled the action an "act of war." Speaking to CBS on Sunday, Buffett remarked, "From our extensive experience, tariffs are, in a way, a form of warfare." At 94 years old, Buffett is recognized as one of the top investors globally and noted that tariffs essentially serve as a tax on products over time, potentially increasing consumer prices. Recently, he highlighted that his company, Berkshire Hathaway, has contributed over $101 billion in taxes to the US government during his 60-year leadership, making it the highest taxpayer in history. "The Tooth Fairy doesn’t cover those costs!" Buffett, who leads Berkshire Hathaway, quipped.
Furthermore, he emphasized the importance of always considering the implications of economic decisions, stating, "One should always ask, 'And then what?'" However, Buffett chose not to discuss the current condition of the US economy, claiming, "While it's a fascinating topic, I can’t comment on it at this moment." On Monday, Trump indicated that his comprehensive tariffs would go into effect on Tuesday and could not be avoided by Canada and Mexico. The 78-year-old Republican, who resumed his presidential role in January, had initially proposed these wide-ranging tariffs in February but had paused their implementation. He accused the two neighboring countries of not adequately addressing illegal immigration and drug trafficking. The imposed tariffs would affect more than $918 billion in US imports from both countries.
In retaliation, Canadian Prime Minister Justin Trudeau announced that his country would impose tariffs on US goods beginning Tuesday, responding to Trump's promised levies. "We will not allow this unjust decision to go without a response," said Trudeau, who is often the subject of mockery from Trump. "If American tariffs take effect tonight, Canada will, starting at 12:01 am EST tomorrow, implement 25 percent tariffs on $155 billion worth of US products," he continued.
Mexican President Claudia Sheinbaum stated her country has strategies in place regardless of Trump's decisions. Additionally, Trump signed an order on Monday to raise an earlier 10 percent tariff on China to 20 percent. In response, Beijing warned it would enact counter-measures to protect its own interests. Trump has also signaled the possibility of imposing retaliatory tariffs on all US trading partners, including India.
