Warren Buffet Compares Trump's Tariffs on Mexico and Canada to 'An Act of War'

Legendary investor Warren Buffett has characterized President Donald Trump's tariffs as "an act of war."

"Tariffs are actually — we've had a lot of experience with them — they're an act of war, to some degree," Buffett said in an interview with CBS News.

"Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em!' And then what? You always have to ask that question in economics. You always say, 'And then what?'"

Buffett's comments come amid President Donald Trump's tariff policies targeting major U.S. trading partners, namely Mexico and Canada. Trump has also increased tariffs on Chinese goods from 10% to 20% and has threatened additional tariffs on European Union nations and BRICS countries.

Buffett has previously expressed concerns about tariffs, opposing Trump's trade proposals during the 2016 campaign, when he called them "a very bad idea."

Commerce Secretary Howard Lutnick dismissed Buffett's comments during CNN's The Situation Room on Monday, calling the remark "silly," and adding that "The United States of America before 1913 only had tariffs, and then we created — when we entered World War I, we all had to pitch in, and we created, of course, the brilliantly named Internal Revenue Service."

As CNN points out, however, what became known as the IRS was initially created in 1862 during the Civil War. The federal income tax, collected by the IRS, was established in 1913 by the ratification of 16th amendment, four years before the US entered World War I.

Buffett's comments mark a departure from his reluctance to discuss politics in recent years, citing concerns that taking public positions could impact his company Berkshire Hathaway and its subsidiaries and shareholders. However, during his annual letter to shareholders in February, many felt he left a not-so-subtle jab at Trump when speaking about the government's responsibilities with taxes:

"Thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part"