Legendary investor Warren Buffett shared his thoughts on the economic impact of tariffs in a rare media interview published on Sunday.
Speaking with CBS News’ Norah O’Donnell as part of a documentary on Washington Post publisher Katharine Graham, the Berkshire Hathaway CEO commented on the Trump administration’s proposed tariffs and their broader economic implications.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war to some degree,” Buffett said.
He went on to describe tariffs as a hidden tax on goods. “The Tooth Fairy doesn’t pay ‘em!” he joked. “And then what? You always have to ask that question in economics. You always say, ‘And then what?’”
Tariffs Set to Take Effect
Buffett’s remarks come as the U.S. prepares to implement a 25% tariff on imports from Mexico and Canada, along with an additional 10% tariff on Chinese goods. Unless postponed, these tariffs are scheduled to take effect on Tuesday.
President Donald Trump has proposed the establishment of an "External Revenue Service" to collect these tariffs, claiming they are paid by foreign entities. However, in reality, U.S. importers bear the cost, which is collected by the U.S. Customs and Border Protection agency.
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Buffett Stays Silent on U.S. Economy
When asked about the current state of the U.S. economy, Buffett refrained from offering a direct opinion.
“Well, I think that’s the most interesting subject in the world, but I won’t talk—I can’t talk about it, though. I really can’t,” he said.
Confident in U.S. Markets
Despite uncertainty surrounding tariffs and economic conditions, Buffett reaffirmed his strong belief in investing in the U.S.
“A majority of any money I manage will always be in the United States,” he stated. When asked why, he simply responded, “It’s the best place! I was lucky to be born here.”
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Berkshire Hathaway’s Investment Strategy
Berkshire Hathaway recently released its 2024 annual report, including a letter from Buffett discussing the firm’s investment philosophy.
“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities,” Buffett wrote.
He emphasized that the company would continue prioritizing equity investments, primarily in American companies with significant international operations.
“Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities—mostly American equities. Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses,” he added.