Warren Buffett Warns Trump's Tariff Policy Could Drive Inflation and Impact Consumers

Warren Buffett Warns Trump's Tariff Policy Could Drive Inflation and Impact Consumers


Warren Buffett, the CEO of Berkshire Hathaway, has expressed concerns over President Donald Trump’s tariff policy, stating that imposing import taxes on goods could negatively impact the economy and drive inflation higher. Ultimately, the financial burden would fall on consumers, who would have to bear the rising costs of goods.

“This is a form of warfare,” Buffett stated, warning that over time, the tariffs imposed on companies would eventually be passed on to consumers, as there would be no external force to compensate for these costs.

Tariff Measures That Could Shake the Economy
Last week, Trump announced a 25% tariff on imports from Mexico and Canada, along with an additional 10% tariff on Chinese imports, set to take effect on March 4, 2025. This decision has sent shockwaves through the economic landscape, raising concerns about inflation trends and consumer impact.

Looking back at 2018 - 2019, Buffett had previously commented on trade tensions, warning that the U.S. government’s aggressive trade policies could have negative global economic consequences.

Buffett Adjusts Strategy to Brace for Market Downturn
While Buffett refrained from making direct comments on the current economic outlook, over the past year, he has gradually sold off stocks in his investment portfolio and accumulated cash at record levels. Some see this move as a warning sign of an impending market downturn, while others view it as a strategic preparation for a leadership transition—simplifying investments and increasing liquidity for the company’s future stability.