Warren Buffett, who is a billionaire investor and the CEO of Berkshire Hathaway (BRK.B), weighed in on President Donald Trump’s tariffs. In an interview with CBS that aired on Sunday, he called tariffs “an act of war, to some degree.” Buffett said that tariffs are taxes that will essentially lead to higher prices for consumers and humorously pointed out that “The Tooth Fairy doesn’t pay ’em!” This isn’t the first time that the investor has spoken out against tariffs. Indeed, he labeled them “a very bad idea” back in 2016.
Buffett’s concerns about tariffs come as Trump prepares to impose 25% tariffs on goods from Canada and Mexico. This move is expected to increase costs for U.S. consumers on everyday goods that rely on international supply chains, such as electronics and vehicles. Economists also worry that tariffs could spark a trade war that leads to retaliatory tariffs from other countries and potentially harm the US economy.
Interestingly, Buffett’s caution can be seen in Berkshire Hathaway’s recent portfolio moves. In fact, the company has been building up its cash reserves to a record $334.2 billion in the fourth quarter. While Buffett remains optimistic about the U.S., saying, “It’s the best place. I was lucky to be born here,” his concerns about tariffs and their potential impact on the economy are clear.
Is BRK.B Stock a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for BRK.B stock. Indeed, the summary section pictured below shows that 14 indicators are Bullish, compared to two Neutral and six Bearish indicators.
