Warren Buffett Warns Trump’s Tariffs May Harm Consumers

OMAHA, Neb. — Investing mogul Warren Buffett expressed concern on March 2, 2025, that President Donald Trump’s impending tariffs could negatively impact U.S. consumers. Speaking in an interview with CBS News, Buffett, the CEO of Berkshire Hathaway, stated, “Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree.”

Buffett highlighted the long-term economic implications of tariffs, stating, “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em! And then what? You always have to ask that question in economics. You always say, ‘And then what?'” His comments come as the U.S. is set to impose tariffs on products from Canada, Mexico, and China beginning March 4.

Trump’s tariffs, announced last week, include a 25% levy on goods from Canada and Mexico and an additional 10% tariff on products from China. In a post on his Truth Social platform, Trump suggested the tariffs would help curb illegal drug trafficking and related issues. “We cannot allow this scourge to continue to harm the USA,” he wrote.

Industry experts have sounded alarms regarding the potential ramifications of these tariffs. The National Restaurant Association indicated in a letter to Trump that the levies could lead to over $12 billion in losses for the food and beverage sector, resulting in higher menu prices for consumers. “We urge you to exempt food and beverage products to mitigate the impact on restaurant owners and consumers,” the letter stated.

According to research from PYMNTS Intelligence, 57% of consumers and small businesses who feel informed about the tariffs hold a negative view of them. PYMNTS CEO Karen Webster noted that many consumers are concerned not only about rising prices but also about potential product shortages. “Seventy-eight percent of those consumers anticipate higher prices and 75% expect product shortages,” she explained. Webster compared current consumer anxiety to the panic experienced during early COVID-19 lockdowns.

During his CBS interview, Buffett refrained from delving deeply into current market conditions but suggested that tariffs generally do not serve well for economic relations. Previous warnings from Buffett regarding tariffs have indicated that they could lead to inflationary pressures, adversely affecting consumers.

As Trump prepares to enforce these tariffs, analysts anticipate an economic landscape where costs for everyday goods rise significantly, with potential backlash from trading partners, including China. Following Trump’s announcement, stocks showed an increase in volatility, highlighting investor concerns over the impact of these new trade policies.

Buffett emphasized the significance of each economic decision, remarking that he cannot predict what tariffs will mean for the long-term health of the economy. Nonetheless, his caution offers a critical perspective on the possible repercussions of Trump’s aggressive tariff strategy.