▲ Warren Buffett
Warren Buffett, the 94-year-old chairman leading the American investment firm Berkshire Hathaway, has unusually voiced a critical opinion about President Trump’s tariff policy.
According to CNBC’s reports on the 2nd local time, Buffett mentioned in a CBS News interview, “We have experienced a lot of tariffs,” and assessed that “tariffs are, to some extent, an act of war.”
Dubbed the “Oracle of Omaha,” he stated, “Over time, tariffs become a tax on goods. The Tooth Fairy doesn’t pay taxes,” adding, “In economics, you always have to ask ‘And then what?'”
In the U.S., there’s a story where children leave a lost tooth under the pillow, and the Tooth Fairy leaves a coin in its place; however, in reality, it’s the parents who place the coins, suggesting that ultimately someone will bear the tax burden.
CNBC reported that this is the first time Buffett has publicly spoken about the tariff policy of Trump’s second administration, noting that he believes punitive tariffs could cause inflation and harm consumers.
Buffett had previously criticized the aggressive actions of the U.S. during Trump’s first term (2018-2019), stating that it would lead to negative global outcomes.
Recently, in the U.S., concerns are growing about inflation and a slowdown in consumer sentiment due to Trump’s broad-ranging tariff policy.
President Trump unsettled the market recently by declaring on social media on the 27th of last month that he would impose a 25% tariff on Canada and Mexico as planned on the 4th, in addition to imposing a further 10% tariff on China, which already faces an additional 10% tariff.
Following this, Howard Lutnick, the U.S. Secretary of Commerce, stated that the tariff rates on Canada and Mexico are flexible, adding to the uncertainty.
When asked about the current economic situation, Buffett avoided a direct comment, saying, “I think it’s the most interesting subject in the world, but I won’t say,” and “I really can’t say.”
Berkshire has recently known to be selling off a lot of its holdings, including Apple stocks, to secure cash, which is primarily being invested in U.S. treasury bonds.
The scale of such cash assets has doubled in a year, reaching $334.2 billion.
Some interpret this as Buffett’s prediction of a downturn in the U.S. economy and stock market, while others see it as considering Berkshire’s succession due to his advanced age.
(Photo = AP, Yonhap News)