Warren Buffett calls Trump's tariffs a tax on goods, says 'the Tooth Fairy doesn't pay 'em'

Published On Mar 2, 2025, 12:28 PM

Warren Buffett expressed concerns about President Trump's tariffs, describing them as essentially a tax on goods that could lead to inflation and negatively impact consumers. He humorously remarked that these costs wouldn't be absorbed by a mythical entity like the Tooth Fairy. This statement follows Trump's announcement of significant tariffs on imports from Mexico, Canada, and China. Buffett has a history of warning against aggressive trade policies, which he perceives as damaging for the economy. Despite recent stock market volatility, Buffett has been notably cautious, increasing cash reserves and reducing stock positions, which may indicate a bearish outlook on the market.