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Warren Buffet calls Trumps Tariffs a Tax on Goods and an Act of War.
5 sats \ 2 comments \ @Solomonsatoshi 4 Mar econ
' Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ‘em.’
— Berkshire Hathaway Chair Warren Buffett
That’s billionaire investor Warren Buffett replying to a question from CBS News about what impact he thought tariffs would have on inflation.
The chair of Berkshire Hathaway Inc had for the most part deflected questions about policy moves out of Washington, D.C., and the state of the U.S. economy as he sat for an interview with journalist Norah O’Donnell for a documentary on the life of Katharine Graham, the late publisher of the Washington Post.
But Buffett did weigh in on tariffs.
“Tariffs are, actually, we’ve had a lot of experience with them. They’re an act of war to some degree,” he said in the interview, which aired Sunday.'
https://www.marketwatch.com/story/heres-what-warren-buffett-thinks-of-trumps-tariffs-over-time-they-are-a-tax-on-goods
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0 sats \ 1 reply \ @oliverweiss 4 Mar
I think that everyone with basic economic understanding would agree with Buffett on the tariffs. However, as Trump has explained, Canada and other countries are not nice to the USA, they are not treating it fairly. There is no way around.
I just don’t know why the other countries react in the same way. It may hurt them, but perhaps not so much in the end.
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30 sats \ 0 replies \ @Solomonsatoshi OP 4 Mar
Trump is imposing tariffs upon USAs three largest trading partners- they are USAs three largest trading partners because they supply manufactured goods and commodities at the best price available for USA. By placing tariffs you distort the market- you incentivise imports from less than ideal suppliers and disincentivise imports from the best value suppliers. It is sheer lunacy and is being used in a manner in breach of trade agreements and international law. Yes the USA can say fuck you to the world, basic economic principles, existing trade agreements, free trade principles and international law, but the world will respond in kind over time, as will markets. The USA consumer and manufacturer will face not only higher prices for the goods they need, but other countries are likely to place tariffs on US exports- in fact China already has. The US manufacturing sector has been in decline for decades and US has had continuous and increasing trade deficits for 6 decades- yes something needs to be done but Trumps tariffs are almost certain to do more harm than good. By alienating long time US allies he is opening the door to China taking the lead in international affairs as well as manufactured goods where China is already strongly dominant. Europe and other US allies could turn to China more as the trade advantage was already in strongly Chinas favour before these punitive and bullying Trump tariffs were imposed. Increasing use of Euro and Yuan denominated trade payments is a certain result of Trumps tariffs. Trump is trashing the USAs soft power advantage- giving it to China. USA stands to lose its reserve currency hegemony which ironically enabled it to become a net consumer and parasite upon the rest of the productive world.
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