Warren Buffett on tariffs: ‘An act of war’

Businessman Warren Buffett broke his silence on Donald Trump's new tariff policy. The one-time economic "oracle" of Barack Obama, noted that the new tariffs on Canadian, Mexican and Chinese goods that went into effect Tuesday "are an act of war, to some degree."

During an interview on CBS that will be part of a documentary about the late Washington Post editor Katherine Graham, Buffett also warned that the new tariffs could lead to rising inflation, a major concern for Americans and one of the pillars of Trump's election campaign: "In the end, they're a tax on goods. The Tooth Fairy doesn't pay them," Buffett stressed with laughter.

‘And then what?’

Buffett therefore pointed out that the most important thing is what will happen after the implementation of Trump's initiative: “And then what? You always have to ask that question in economics: Always say, ‘And then what?’”

Buffett reminded that tariffs are not a new policy for the U.S., but that "actually, we've had a lot of experience with them [tariffs]." The investor declined, however, to analyze the current economic moment: "Well, I think it's the most interesting topic in the world, but I'm not going to talk, I can't talk about it, though. I really can't."