The legendary Warren Buffett is not one to talk about politics much, but when it comes to President Donald Trump’s tariffs, the Oracle of Omaha isn’t staying quiet. In a rare comment, Warren called them what they really are—an extra tax on everyday products.
Speaking to CBS News’ Norah O’Donnell, he compared tariffs to an “act of war” and said consumers, not foreign companies, are the ones who end up paying.
“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” Warren said . “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” Warren added with a laughter. “And then what? You always have to ask that question in economics. You always say, ‘And then what?’”
Trump is not backing down on tariffs. Just last week, he announced new trade measures, hitting Mexico, Canada, and China hard. A 25% tariff on imports from Mexico and Canada will go into effect on March 4, along with an additional 10% tariff on Chinese goods. China is already preparing for retaliation.
And right now, the S&P 500 is struggling, barely up 1% this year per data from Google Finance, but at the same time, Warren has been dumping stocks, stacking up cash reserves. Some investors believe this means he’s expecting a market downturn, while others think he’s simply preparing Berkshire Hathaway for its next leader, as Cryptopolitan reported a week ago.
When asked about the economy during his CBS interview, Warren dodged the question, saying with a laugh: “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.”
This isn’t the first time Warren has warned about these trade wars. Back in 2018 and 2019, during Trump’s first term, Warren said in more than one interview that Trump’s aggressive tariffs would definitely hurt the global economy.
Trump targets Canadian lumber, launches national security investigation
It’s not just Mexico and China. Trump has launched a new trade war against Canada’s lumber industry, ordering an investigation into whether lumber imports are a threat to U.S. national security. The probe, directed by Commerce Secretary Howard Lutnick, could lead to new tariffs on Canadian wood.
An executive memorandum signed by Mr. Trump ordered the investigation and was accompanied by another document that White House officials said would expand the volume of lumber offered for sale each year, increasing supply and helping to ensure that timber prices do not rise, according to a report by the NY Times.
Canadian officials are already pushing back. Some citizens are calling for boycotts on American products, furious over Trump’s claim that the tariffs are punishment for Canada’s failure to stop the flow of drugs and migrants into the U.S. Many Canadians deny Trump’s accusation that fentanyl is coming in from their country.
The U.S. and Canada have been fighting over lumber trade for decades, using tariffs and disputes to protect their own industries. Trade battles have played out under NAFTA and the World Trade Organization (WTO) for years. Canada supplied $28 billion worth of lumber to the U.S. in 2021, accounting for nearly half of all U.S. lumber imports. Other suppliers include China, Brazil, and Mexico.
The U.S. isn’t just an importer. It also exported $10 billion worth of lumber to Canada in 2021, plus $6.5 billion to Mexico. Still, Trump’s administration insists the U.S. should be self-sufficient in lumber production and that cheap imports have hurt American mills.
Senior trade advisor Peter Navarro backed Trump’s tariffs, claiming Canada, Germany, and Brazil have undercut the U.S. lumber industry with cheap imports. “Disastrous timber and lumber policies drive up construction and housing costs and impoverish America through large trade deficits,” Navarro told reporters on Saturday.
Navarro defended the new trade measures, saying Trump’s tariffs will boost the supply of American timber and create more demand for domestic lumber. “That stops today with a pair of Trumpian actions designed to both bolster the supply of and demand for American timber and lumber,” he said.
The construction industry is already worried, as higher lumber costs will increase homebuilding and renovation prices, affecting everything from furniture to cabinet manufacturing, so businesses relying on imported wood could face serious price hikes.
According to Navarro, a major concern for the White House is whether lumber imports actually be a national security risk. Trump’s administration has previously justified tariffs on steel, aluminum, and copper using national security claims—since those metals are used for military equipment. But wood? That’s a harder sell.
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