Mon Mar 03 23:50:00 UTC 2025: ## Buffett Slams Trump’s Tariffs as ‘Act of War,’ Sparks White House Rebuttal

**New York, NY** – Legendary investor Warren Buffett has issued a stark warning against President Trump’s escalating tariff policy, calling them “an act of war” in a rare interview with CBS News. Buffett, CEO of Berkshire Hathaway, argued that tariffs ultimately function as a tax on consumers, raising prices and harming the economy. He emphasized the need to consider the long-term consequences of such policies, questioning, “And then what?” regarding the ultimate cost burden.

Trump’s administration is moving forward with a 25% tariff on goods from Canada and Mexico, and has increased tariffs on Chinese goods from 10% to 20%. These actions, coming amidst declining consumer confidence and inflation concerns, have been met with criticism from economists who predict higher prices for everyday goods. China has retaliated with its own tariffs, raising the specter of a wider trade war involving the European Union and other trading partners.

Buffett’s comments were swiftly dismissed as “silly” by Commerce Secretary Howard Lutnick in an interview with CNN. Lutnick incorrectly claimed that tariffs could replace the IRS, suggesting a historical inaccuracy regarding the agency’s founding.

The disagreement highlights a growing rift over the economic impact of Trump’s protectionist trade policies. Buffett, who has previously voiced his opposition to Trump’s tariff proposals, is not alone in his concerns. Economists widely view tariffs as an inefficient tool for international trade, often leading to retaliatory measures and damaging global economic stability. The historical precedent of the Smoot-Hawley Tariff Act of 1930, which exacerbated the Great Depression, further underscores the potential risks.

While Buffett declined to elaborate on his “act of war” statement, the historical association between high tariffs and protectionist policies that can lead to international conflict is well-established. The current situation marks a significant escalation in trade tensions, with the long-term consequences remaining uncertain. The contrasting views between Buffett and the Trump administration underscore the deep divisions surrounding the economic wisdom of the current tariff strategy.

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