Summary
Warren Buffett criticized tariffs as “an act of war,” warning they function as a tax on goods and raise consumer prices.
His comments follow Trump’s decision to impose 25% tariffs on Canada and Mexico and raise tariffs on China from 10% to 20%, escalating trade tensions. Economists warn tariffs could worsen inflation and harm U.S. consumers.
Commerce Secretary Howard Lutnick dismissed Buffett’s concerns and falsely claimed tariffs could replace the IRS.
Buffett has long opposed tariffs, citing historical economic damage, including their role in worsening the Great Depression.
“I think Buffett is wrong about how the economy will react” - wow. THAT is a hot take.