Warren Buffett: "Tariffs are an act of war... they will eventually be passed on to consumers"
Summary
- Warren Buffett warned that President Trump's tariff policy would increase the economic burden on American consumers.
- Buffett stated that the increased costs due to tariffs would eventually be passed on to consumers.
- He evaluated America as the best investment destination and said that most of the money he manages would always remain in the United States.
American investment guru Warren Buffett warned on the 4th that President Donald Trump's tariff policy would ultimately threaten the wallets of American consumers.
In an interview with CBS News, Buffett said, "We have actually had a lot of experience with tariffs," adding that "tariffs are somewhat an act of war."
When asked 'what impact do you think tariffs will have on inflation,' he replied, "Over time, they will become taxes on goods." This means that the increased costs due to tariffs will eventually be passed on to American consumers.
Buffett jokingly said, "The tooth fairy doesn't give money." This is interpreted as emphasizing that when tariffs are imposed, the costs don't magically disappear or get covered by someone else - ultimately, consumers will pay for them, just as money doesn't simply appear when a child puts a tooth under their pillow.
Buffett avoided answering questions about President Trump or his close ally, Tesla CEO Elon Musk, pursuing a smaller government.
However, he said, "Most of the money I manage will always be in America," adding that "America is the best place (to invest)."
Jeong-dong Noh, Hankyung.com reporter dong2@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
