Legendary investor Warren Buffett has issued a rare warning about President Donald Trump's tariff policies, stating that punitive duties could trigger inflation and harm consumers.
In an interview with CBS News, Buffett remarked, "Tariffs are actually... an act of war, to some degree." He emphasized that tariffs are effectively a tax on goods, adding humorously, "The Tooth Fairy doesn't pay 'em!"
This marks Buffett's first public comment on Trump's trade policies. Recently, Trump announced a 25% tariff on imports from Mexico and Canada and an additional 10% on Chinese goods.
When asked about the current economic situation, Buffett declined to comment directly, stating, "I really can't." Over the past year, he has sold stocks and amassed significant cash, leading analysts to interpret his moves as either bearish or preparatory for his successor.
Market volatility has increased amid concerns about a slowing economy and stock valuations, with the S&P 500 up just about 1% this year.
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