Warren Buffett says tariffs are an economic 'act of war': 'Tooth Fairy doesn't pay 'em'

Published On Mar 3, 2025, 12:44 PM

Warren Buffett commented on the negative economic implications of tariffs during a recent interview, likening them to an 'act of war.' He stated that tariffs ultimately act as a tax on goods, suggesting that their burden falls on consumers. With the imminent imposition of new tariffs by the Trump administration, Buffett emphasized that he continues to favor investing in the U.S. economy, viewing it as the best option for his portfolio. His remarks highlight the potential for tariffs to increase costs for companies and consumers alike.

Stock Forecasts

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Negative

The imminent tariffs, particularly on goods imported from Mexico, Canada, and China, could result in increased costs for businesses relying on imported goods, potentially negatively impacting their profit margins and stock prices. Companies that import goods from these countries might experience a decline in stock performance due to increased operational costs and consumer price inflation. Additionally, sectors dependent on international trade may also indicate market volatility due to tariffs.

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