President Trump has been making good on his campaign promise to impose stiff tariffs, including a 25% duty on Canadian and Mexican imports following a 30-day pause. The president also enacted a new 20% blanket tariff on China. In addition, Trump is now enforcing a 25% tariff on all countries that import steel and aluminum into the United States.
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More changes could be coming, as well. With reciprocal tariffs expected, Trump is giving other countries the opportunity to reduce their trade barriers, otherwise “the intent is to enact tariffs on April 2,” a White House official stated, according to Reuters.
While Trump has no problem imposing tariffs, Warren Buffett, the CEO of Berkshire Hathaway does not share the same view. The legendary investor sat down with CBS News’ Norah O’Donnell and expressed strong views on the impact they will have on the economy.
In a rare sit-down interview, Buffett, who is known for his straightforwardness, was asked about his thoughts on tariffs and didn’t hold back. “We’ve had a lot of experience with them,” he stated. “They’re an act of war to some degree.”
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The Peterson Institute for International Economics predicted everyday goods will rise in cost as a result of Trump’s tariffs, and the billionaire agreed that over time customers will pay the price.
“The Tooth Fairy doesn’t pay ’em!” Buffett said with a laugh. He added, “You always have to just, ‘And then what?’ You always have to ask that question in economics, always say ‘and then what?’”
Fears of a trade war are growing as countries like China, which imposed a 15% tariff on U.S. farm imports, are striking back. Meanwhile, Buffett said the tariffs will have a long-term negative effect.
“Prices will be higher 10 years from now, and 20 years from now, and 30 years from now,” he explained.
In essence, Buffett, who is one of the most watched people in the world for his savvy investment skills, cautioned that tariffs can have harmful effects that could create financial hardships for Americans by increased prices and strained international relationships, which might outweigh any benefits.
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This article originally appeared on GOBankingRates.com: Warren Buffett Issues Warning About Impact of Trump’s Tariffs