Priyanka Tiwari
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Longstanding investor Warren Buffet commented on President Donald Trump’s stringent tariffs, which may result in inflation and raise the cost to consumers.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” stated Buffet during an interview with CBS News.
The CEO of Berkshire Hathaway made the comments while watching a new documentary on late The Washington Po lt’s publisher, Katharine Graham.
Berkshire’s vice chairman did these comments the day before Trump’s tarrifs on China, Canada and Mexico went into action, further concentrating a trade battle that has worried international investors.
Buffett, who heads an extensive business portfolio including insurance, railroad, and retail, stressed that indeed tariffs are a burden for consumers, “a tax on goods.”
“Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” he said while laughing.
“He also suggested that after a dozen years all children stop believing in the tooth fairy,” he pointed out, “and add this ‘And then what?’ when considering each issue of economical analysis.”
These are the most recent trade statements he has made and the first for Buffet in regards to Trump policies and tariffs.
Trump declared that the new tariffs will take effect on March 4, which include a 25% tariff on imported goods from Canada and Mexico, along with a 10% surge on Chinese imports. He also exclaimed that these measures are bound to turbocharge US job growth and the economy in general.
US retalitory tariffs on both Canada and China did not go unnoticed and as a result Canadian and Chinese authorities made it seem like US will never go unchecked.
Buffett has without fail discussed how trade wounds are self inflicted and brought to life during Trump's first term. In 2018 and 2019, he proactively warned against the ever in motion aggressive tariffs due to their worrying impacts on the global economy.
As usual when asked about USofA's economy, Bee-frett decided to keep mum pressing the issue further.
Buffett claims he is stockpiling tremendous amounts of cash due to his bullish stance on the united states economy. In the last quarter of last fiscal year, the company’s cash reserves reached an astonishing $334.2 billion in comparison to the $167.6 of the prior year. Once Berkeley began selling shares of the Apple and Bank of America speculation became dire on Bees outlook for the market.
