Warren Buffett Warns Trump's Tariffs Could Drive Inflation

The Berkshire Hathaway CEO describes tariffs as an 'act of war' and a tax on consumers, cautioning against their long-term economic effects.

Warren Buffett criticized President Trump's planned tariffs on Mexico, Canada, and China, calling them an 'act of war' that would ultimately burden consumers.
Buffett emphasized that tariffs function as a tax on goods, leading to higher prices over time, with inflation as a likely outcome.
The Trump administration plans to impose 25% tariffs on imports from Mexico and Canada and increase tariffs on Chinese goods to 20%.
Buffett highlighted the importance of asking 'And then what?' in economic decisions, warning that tariffs could have lasting inflationary impacts.
While Treasury Secretary Scott Bessent claimed foreign nations would bear the costs, the Federal Open Market Committee has noted businesses are likely to pass these costs to consumers.