'Tooth Fairy doesn't pay 'em!': Buffett criticizes Trump's tariffs threats
What's the story
Warren Buffett, the legendary billionaire investor and CEO of Berkshire Hathaway, has expressed his concerns over US President Donald Trump's proposed tariffs on Canada and Mexico.
Speaking to CBS News, Buffett emphasized the inflationary impact these punitive duties would have on American consumers.
Describing the tax burden in such scenarios, he humorously added, "the Tooth Fairy doesn't pay 'em!"
Tariff implications
Buffett likens tariffs to an act of war
Buffett, whose conglomerate spans across industries like insurance, energy, retail, and manufacturing, compared tariffs to an act of war.
He said they are basically a tax on goods over time.
His remarks come after Trump recently announced a 25% tariff on imports from Mexico and Canada from March 4.
China will also be slapped with an additional 10% tariff on the same day.
Past concerns
Previous warnings on trade conflicts
Notably, Buffett had earlier voiced his concerns over the possible global impact of aggressive trade policies in Trump's first term.
In 2018 and 2019, he had warned that such measures could have adverse effects across the globe.
However, when asked about the current state of the economy in the wake of these tariff announcements, Buffett refused to comment further.
Since last year, the billionaire has been on the defensive, quickly dumping stocks and also raising a record sum of cash.